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Estimated Tax Payments (Part 2)

March 24, 2020 by Guest Writer

In our previous post, synthesized from Small Business Trends, we shared information on who should pay estimated tax payments and when they were due. Here’s more information for you to digest about this topic:

How do you file estimated tax payments?

  • paper filing
  • electronic filing

How much should you pay?

  • use Form 1040-ES to calculate your individual estimated tax payments
  • corporations should use the worksheet on Form 1120-W  to calculate estimated tax payments.
  • most pay quarterly, but if you choose to pay monthly you can

Keep in mind that the IRS charges a penalty, if you fail to pay enough in estimated taxes throughout the year. They also levy a penalty for late or insufficient payments, regardless if you’re owed a refund when you file your tax return.

As with all financial information,this is general information, please contact your tax professional for advice.

For full article: Estimated Tax Payments: Answers for Small Business Owners and Self-Employed

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