When are Quarterly Taxes Due?
Quarterly Taxes: Payable Four Times Annually3 min read
Quarterly taxes are taxes that are due four times per year — on April 15, June 15, September 15, and January 15 of the following year. Those who are self-employed, freelancers, small business owners, or those with a second job may find themselves responsible for meeting these quarterly tax filing deadlines. This requirement means that the individuals and businesses engaged in any of these activities must accurately estimate their tax liabilities each quarter and remit payments accordingly. If you are a business owner based in Los Angeles, understanding the timeline, filing requirements, and tax penalties associated with quarterly taxes can help you remain compliant as you work through each filing period.
Estimating and Paying Quarterly Taxes
Most people are accustomed to paying taxes annually, yet some taxpayers have an additional tax burden to consider when filing their returns. Those who are expected to pay quarterly taxes must estimate the amount of taxes due each quarter. This annual estimate must be divided by four in order to determine the amount of tax due each quarter.
The easiest way to estimate your taxes due each quarter is to look back at the previous year’s taxes. After determining your total tax liability for the previous year, divide the total by four. This amount will become your estimated tax requirement for the current year and must be paid each quarter.
Once you have estimated the amount of your quarterly taxes, you must pay the debt owed by the quarterly deadline. The accepted method of payment for quarterly taxes in Los Angeles is typically via check or money order made payable to the “Federal/State” government, as the case may be. When you submit your payment, be sure to include a payment voucher to indicate who is paying the bill, the purpose of the payment, and other relevant information.
effect of Missed Payments
Failing to make a quarterly tax payment or make the payment on time can lead to serious penalties and fines. These penalties are calculated as a percentage of the amount owed and must be added onto the total amount of taxes due for the period. Additionally, any amount of taxes due that is not paid in full by the applicable due date can be subject to additional penalties and interest.
In Los Angeles, the best practice is to pay quarterly taxes on time and in full. By doing so, businesses can remain compliant and avoid any Understandably, the fluctuating income of freelancers, independent contractors, and those who are self-employed can make accurate estimates of quarterly taxes difficult to make.
When to Contact a Tax Attorney in Los Angeles
In cases in which taxes owed are significantly greater than what was anticipated or your tax situation is complicated, it may be in your best interest to utilize the services of a qualified tax attorney. An experienced tax lawyer can provide a detailed analysis of your income and expenses and work with you to determine the most effective way to remain compliant with the applicable tax laws.
An experienced tax attorney can also provide advice and counsel on filing tax forms, filing extensions, dealing with tax audits, and avoiding tax penalties. If you’ve already encountered problems with the IRS, a tax attorney can provide invaluable assistance.