The Inside Scoop on Estimated Quarterly Taxes From Your Tax Planning Attorney in Monroe, LA
Independent contractors who earn income that will trigger $1,000 or more in taxes are expected to make estimated quarterly tax payments. This is something that surprises most people.
While there’s an option to pay the entire taxes owed come tax time, doing so carries a significant financial penalty.
If you are an independent contractor, a business owner, or make money outside your regular job, you’ll save a lot by paying estimated quarterly taxes. Our tax planning attorneys in Monroe, LA can help you on such matters.
Estimated Quarterly Tax Payments: The Basics
The federal government requires independent contractors to estimate their quarterly earnings and pay taxes based on that estimate. Thus, there’s no sense paying a hefty penalty for failing to pay quarterly taxes when you can estimate them once every three months.
Keep in mind that you will recoup any overpayment if your actual earnings end up less than your anticipated earnings.
Instead of trying to navigate this complex financial and bureaucratic maze on your own, lean on our tax planning attorneys in Monroe, LA to help you. Our tax planning experts will sweat the small stuff, letting you focus on your work instead of keeping everything square with Uncle Sam.
We are here to help you estimate taxes owed each quarter and fulfill your tax obligations with on-time payments. Our tax planning attorneys in Monroe, LA also have all the process details for obtaining refunds for overpayments.
Assistance for the Self-Employed and Others
Estimated quarterly tax payments are required for self-employed individuals and those who have income aside from their regular salary. However, traditional employees have their taxes withheld from paychecks and transmitted directly to the state government and IRS.
Estimated taxes can complicate your financial picture if you earn income outside a traditional job setup. They are owed on incomes not subject to withholding, like business earnings, taxable alimony, gains from the selling stock, dividends, and money obtained from selling assets.
You can bypass these quarterly payments in favor of a massive lump sum payment each tax season. But doing so would spur the underpayment penalty.
If you’re one of the hardworking members of the Monroe, LA community, you want to do everything possible to minimize your tax burden.
Good thing Niswanger Law is here to help you do exactly that. Our tax planning attorneys in Monroe, LA have helped local independent contractors and others who earn income outside their traditional jobs make quarterly and annual tax payments.
Schedule a Consultation With Niswanger Law
Our tax planning attorneys in Monroe, LA are just a call away. Find out more about how we can help with your estimated quarterly taxes or other tax projects.