Tax Reform Tip: Check to see if you need to make additional or estimated tax payments
We know that you typically pay most of your tax during the year, as you earn income. Generally, you need to pay at least 90% of your taxes throughout the year, either by withholding from your paycheck or making estimated payments (or sometimes both). If you don’t, you may owe an estimated penalty when you file come April.
You can pay your taxes throughout the year, at anytime either electronically or by check.
Something to note… if you pay your taxes by both withholding and making estimated payments, you should do a payment checkup. You can use the IRS.gov website to use the Withholding Calculator (click here) which will help you avoid an unexpected tax bill this upcoming tax season.
You may need to make estimated payments IF….
You are an individual who expects to owe at least $1,000 when you file return and you owed additional tax when you filed your return last year.
If you have more than one job and do NOT have each employer withhold taxes, are self-employed, are an independent contractor, are a representative of an in-home sales company, or are not working as an employee but participate in sharing economy activities.
PLEASE NOTE: the remaining estimated tax payment due dates are:
September 17th, 2018
January 15th, 2019
For more help, CLICK HERE to view the Tax Reform Page, which gives you updates about tax law changes and how they affect you.
If you have any questions, you know your #GoldenGirls got you!