Uber driver or involved in some kind of consulting work? Whether you’re working as a 1099 contractor or enjoying making money from renting your spare room, don’t forget you may need to pay estimated taxes. The upcoming 3rd quarter estimated tax deadline is Tuesday, September 15th.
Are you ready to make the estimated tax payment? If not, let me give you a few suggestions.
Do I Need To Pay Estimated Taxes?
We are required to pay our taxes as we earn our income. Our federal and state government expects tax payments throughout the year. This is the primary reason why taxes are regularly withheld from the employee's paychecks.
If you are Uber Driver, Renting Your Home on Airbnb, Self-Employed as a freelancer, contractor or home-based entrepreneur you most likely don’t have your taxes withheld from your pay (we strongly recommend that you check with your tax professional and file timely payroll) throughout the year. That is why you are subject to estimated tax payments. If you think you will owe more than $1000 in taxes this year or 10% more than your last year taxes than you should pay the estimated tax.
Due Dates for the Estimated Tax Payments
Here’s the schedule:
- 1st Quarter (January 1 – March 31): April 15
- 2nd Quarter (April 1 – May 31): June 15
- 3rd Quarter (June 1- August 31): September 15
- 4th Quarter (September 1 – December 31): January 15
As always, If the 15th falls on a weekend or a holiday, then the due date is the next weekday.
How Can I Pay Estimated Tax Payments?
Here are a couple ways to make the tax payments.
- In our office, we use the Electronic Federal Tax Payment System (EFTPS), which is the fastest and easiest way to make your estimated tax payments. it’s also free.
- Our post offices are still operating (who knows till in current financial condition) so you can still mail in your payment. The IRS has specific mailing addresses based on the state where you live. Make sure that your payments are postmarked by the due date to avoid penalties.
Important Note about estimated taxes: Keep a record of all your estimated tax payments. Your CPA will ask for this at the end of the year to enter the estimated taxes paid when you file your taxes.
Have a question Estimated Taxes
Please feel free to ask your estimated tax question on the Facebook page.