If you’re a self-employed person, you may be wondering about the difference between a CPA and estimated taxes. Whether you owe taxes or not is a personal decision. Your tax situation is unique, and you’ll likely be required to pay estimated taxes quarterly, which is different from paying an employee’s taxes. Thankfully, there are several ways to stay on track with your estimated taxes.
The first step in figuring out how much you owe is to determine your income and expenses. Most people can easily estimate their income for the year, but a CPA can help them do the calculations. Some individuals owe estimated taxes each year. Some individuals have more than one source of income. For example, a person who earned $3,000 in 2017 is required to pay estimated taxes for that year every four months.
Another benefit of hiring a CPA is that you can rest assured that you’ll pay your taxes on time. The IRS doesn’t like late payment penalties. The sooner you file, the less you’ll be liable for interest and penalties. Besides that, you won’t have to worry about a late payment. Moreover, an experienced CPA will help you calculate how much you’ll owe for the year.
Whether or not you’re self-employed, independent contractor, freelancer, or have a side gig, it’s important to file quarterly estimates. You’ll owe more if you wait too long, which will result in penalties and interest. Additionally, if you’re self-employed, you may have to file an estimated tax form. A CPA can also help you determine whether you owe an estimated tax.
A CPA can help you figure out the amount you’re expected to pay for each tax year, as long as you pay at least the minimum amount. Some types of income require estimated taxes, and you need to pay as much as possible in order to avoid penalties and interest. If you’re self-employed, you’ll need to file estimated taxes each quarter. You’ll also need to file alternative minimum taxes, which is another reason to hire a CPA.
While the deadline for filing an annual return is April 15 (the deadline to file an e-filed tax return) is a big deal, it’s important to do an estimated tax payment. You’ll need to pay estimated taxes for certain income categories, such as those that fall under the self-employed category. You can’t rely on your accountant to do this. Even if you’re working from home, you still need to make estimated payments. You can even pay a bit more than you owe each quarter to avoid penalties and interest. Additional information here.
Your CPA can help you calculate your estimated taxes, too. If you don’t want to use a calculator, you can use a free estimate tax calculator. You can even choose to pay by check, but make sure to keep track of the amount. You should also keep your records of all of your payments. This can help your CPA figure out how much you owe. You can also use a free online calculator to estimate your estimated taxes. Read More.