For millions of small business owners, freelancers, consultants and other self-employed folks, April 15th isn’t the last “Tax Day” to worry about. For business owners subject to estimated taxes, tax payments are due four times each year, on April 15th, June 15th, September 15th and January 15th. These payments are called “estimated tax payments” and are meant to approximate one quarter of your annual tax liability.
Determining just how much to pay each quarter can be tricky, as it involves calculating the Net Profit for your business. If you don’t have a bookkeeper to keep track of your business finances, there are few sites to help you either calculate your quarterly tax bill or make the tax payments themselves:
- IRS Direct Pay is the brand new site that lets taxpayers pay their estimated taxes directly from a checking or savings account without any fees or pre-registration. One bonus is that taxpayers receive instant confirmation that the payment has been submitted. With IRS Direct Pay, however, you can only schedule up to 30 days in advance.
- EFTPS.gov is the IRS site where you can setup payment via e-check and schedule your payments further in advance. Be forewarned that setting up your account can take up to two weeks, so you’ll want to have your login credentials ready well before your tax payment due date. The nice thing with EFTPS, though, is that you can schedule all of your estimated tax payments for the year in advance.
- GoDaddy Bookkeeping, formerly Outright.com, provides a handy tool as part of their service to help you calculate the proper amount of your estimated tax payment. For $9.99 per month, you can manage your bookkeeping and stay on top of your estimated tax liability, as well as receive helpful alerts about upcoming tax deadlines.
- Of course, my own email newsletter comes out just four times each year … right in advance of each estimated tax due date. Subscribe here to get your quarterly reminders.
Looking for more information on estimated tax payments? The IRS site provides tons of information, including downloadable forms, due date calendars and resources to request additional information.
Of course, hiring a professional bookkeeper is the easiest way to ensure that you are making the appropriate estimated tax payments. Ready to work with a pro? Contact us today to learn about our virtual bookkeeping services, including electronic payment of your estimated taxes.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.
