15/01/2020
Freelance Friends,
Q4 2019 Quarterly Estimated Taxes are due today. If you don't pay quarterly taxes you may end up with an underpayment penalty. https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
Tax Facts (but not legal advice):
- It doesn't matter if it's your main gig or side hustle; if you are earning freelance money the government wants it's quarterly payments.
- If you expect to owe over $1,000 in taxes for the year you likely need to pay quarterly taxes.
- If you have a hard time estimating, look into a concept called "safe harbor". You can sometimes use the amounts you paid from the previous year to show the government you are making an effort to pay your share. This can help avoid the underpayment penalty, but you will still owe additional taxes April 15th if you underpaid.
🎶If you drive a car, I'll tax the street
If you try to sit, I'll tax your seat
If you get too cold, I'll tax the heat
If you take a walk, I'll tax your feet🎶
Learn who must pay make estimated taxes, how to determine your tax payments and when to make them.