Big Ape Bookkeeping and Tax Service

Pay your estimated taxes If you’re an independent contractor or business owner, you need to know how to pay your quarterly estimated taxes. Generally, your estimated taxes are due by January 15, 2021, but if you’ve forgotten, get them paid by December 31, 2020 to take advantage for the 2020 tax tear. When figuring out how to manage your money as a business owner, understanding and planning for estimated taxes is one of the most important things you can do. Realize, too, that ...those collecting unemployment but who choose not to have it taxed also owe estimated taxes. Review your unemployment payment to see whether tax has been withheld. If it hasn’t, make a plan to pay your estimated taxes. Penalties and interest can add up when you miss estimated tax payments, so paying as soon as possible can help you avoid bigger costs.

Check your current withholding Your withholding is how much is being withheld from your paycheck to pay state and federal income tax, as well as your payroll taxes, which include Social Security and Medicare taxes. When you filled out your employment paperwork, you filled out a W-4, which allowed you to share your filing status and choose the level of withholdings from your paycheck. Now is a good time to review your withholding and make sure it’s accurate.... If you’ve lost income, any extra withholding might be more than you should be paying, and though you might get a bigger tax refund later, you could improve your cash flow today by making an adjustment. The IRS even has a tax withholding calculator that can help you make a better estimate.

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