You might be mistaken if you’re a small business owner or freelancer and think you only have to pay the IRS once a year. Estimated tax payments only apply in certain states, so review your local tax laws to avoid any penalty.  

In this episode, Alex breaks down what estimated tax payments are, who has to pay them, and how to pay them on time, and shares some insight to keep clear of paying the IRS more than is absolutely necessary. 

In this episode, you’ll also hear:

• Avoiding underpayment penalties  

• Pay-as-you-go tax and how taxes are remitted to the IRS

• Who must pay quarterly tax payments  

Must-listen moments: 

[00:03:50] …in the United States, we have a pay-as-you-go tax. What that means is when you make money or have taxable income, you are expected to remit the payments to the IRS as quickly as physically possible.

[00:04:39] An estimated tax payment is the process you go through every quarter to remit your estimated tax bill to the IRS based on how much revenue you earned and your estimated adjusted gross income.

[00:09:58] Making these estimated tax payments particularly applies to small business owners and freelancers.

For more detail on financial topics curated just for freelancers, visit www.freelancefinancefix.com

You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/