For many individuals and business owners, quarterly tax payments are a crucial part of staying compliant and avoiding underpayment penalties. At Allied Tax Advisors, we assist our clients in accurately calculating and managing their quarterly estimated taxes, helping them stay on top of their tax obligations without the stress.
Quarterly tax payments are estimated tax payments made four times a year to cover your federal income tax, self-employment tax, and other applicable taxes. If you expect to owe more than $1,000 in taxes after subtracting withholdings and refundable credits, the IRS generally requires you to make estimated payments throughout the year.
These payments are commonly required for:
Business Owners: Corporations, partnerships, and LLCs that need to make estimated tax payments for federal and state obligations.
You can base your estimated payments on 100% of your previous year’s tax liability if your adjusted gross income (AGI) was $150,000 or less ($75,000 for married individuals filing separately). If your AGI was more than $150,000, you need to pay 110% of your prior year’s tax liability to meet the safe harbor requirements.
You can also calculate your estimated payments based on 90% of your current year’s tax liability. This method requires more accurate forecasting of your income and deductions throughout the year.
If your income fluctuates significantly during the year, you can use the annualized income installment method to determine your estimated tax payments. This approach calculates payments based on your income as it is earned, rather than assuming equal payments throughout the year.
We calculate your quarterly estimated taxes based on your current income, deductions, and tax rates, ensuring that your payments are accurate and sufficient to avoid penalties.
By staying involved throughout the year, we help you manage cash flow, estimate liabilities, and strategize around any changes to your income that could impact your estimated tax payments.
Paying too little in estimated taxes can result in costly penalties. We ensure that you pay enough each quarter to minimize or eliminate any underpayment penalties.
Quarterly payments mean tax time is effectively year-round. We’re here to provide support, answer questions, and adjust estimates whenever your financial situation changes.
Every taxpayer’s situation is unique. We provide tailored advice that takes into consideration your income fluctuations, expenses, and tax-saving opportunities.
We make quarterly taxes simple, keeping track of due dates and making sure all payments are submitted on time and in the right amounts, helping you avoid the hassle of managing IRS schedules.
The IRS expects estimated payments to be made on the following schedule:
Keeping track of these dates can be overwhelming, but our team ensures that you are prepared well in advance, so you never have to worry about missing a deadline.
Get in touch with Allied Tax Advisors to schedule your consultation. Our team is ready to provide the tax expertise and peace of mind you deserve.
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