The deadline to submit your fourth quarter estimated tax payment is due on January 15. If you’re worried about forgetting the deadline amid the hustle and bustle of the holiday season, you can schedule your estimate tax payments in advance.
In this blog, we discuss how paying estimated quarterly taxes ahead of the deadline can save you time, stress, and money — and also how an experienced Maryland tax lawyer can help if you’re struggling with tax liabilities.
What Are Estimated Taxes and Who Needs to Pay Them?
Estimated tax is the tax on income that does not include withholdings. If you have income from rental properties, freelance work or self-employment, alimony, interest, or dividends from stocks, you should pay estimated quarterly taxes to avoid potential underpayment penalties when you file your annual tax return.
Unfortunately, many freelancers or self-employed individuals lose track of their extra income sources and amounts and also forget the quarterly payment deadlines. In some instances, otherwise compliant taxpayers don’t pay taxes on certain income because they simply didn’t realize they were required to.
Whenever you’re unsure about your tax obligations, you should contact a skilled and experienced tax lawyer.
How to Pay Your Estimated Taxes
Scheduling your tax payments is more convenient than you might realize. The IRS has several tools that allow you to schedule your payments prior to each quarterly deadline. For some people, mailing a check with an IRS Form 1040-ES works just fine. But when you don’t want to worry about missing a payment due to potential mail issues, scheduling your payment ahead of time is a safe and effective choice.
There are two ways to pay your estimated quarterly tax payments online.
- Direct Pay: Schedule your payment directly from your bank account for free up to 30 days ahead of the deadline. Direct pay could be a good option if your income fluctuates throughout the year in ways that are hard to predict.
- Electronic Federal Tax Payment System (EFTPS): Schedule your payments up to one year in advance. To pay estimated taxes for yourself or your business, you must be enrolled in EFTPS. You’ll receive a personal identification number as part of this process, which will be mailed to you roughly one week after you register. Consider scheduling your payment through EFTPS if your income is consistent throughout the year.
Regardless of how you choose to pay, scheduling your estimated tax payments can save you significant time, money, and headaches.
How a Tax Lawyer Can Help With Estimated Quarterly Payments
Filing and paying estimated quarterly taxes can be complicated, especially when you have multiple revenue streams to consider or if you have overpaid, underpaid, or not paid at all in the past. If you have questions about making or scheduling your estimated tax payments, you should contact an experienced tax lawyer today to get a better understanding of the process, file and pay on time, and avoid any penalties or fines for late filing and payment. Please click here to learn more about these penalties and a few tips and tricks to avoid them.
Questions About Your Estimated Tax Payments? Contact S.H. Block Tax Services Today
At S.H. Block Tax Services, our skilled attorneys and dedicated support staff are here to help taxpayers like you make sure that all of your tax and financial records and documents are in order and that your filings and payments are on time.
If you have questions about your tax status or upcoming payment schedule, please contact us today by calling (410) 793-1231 or completing this brief online form to schedule your free, no-obligation consultation with one of our experienced Maryland tax lawyers.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.