Additionally, a business is required to pay taxes each quarter. While the IRS has all these worksheets you can use to figure the amount of tax to pay to the IRS each quarter, in my personal opinion they are an absolute waste of your time. If you just send the IRS an absolute minimum of 20% of your ***GROSS*** business income each quarter, then come tax filing time you'll be fine. If you have reason to believe your total household income from all sources will be more than $160K for the entire tax year, then you should send the IRS at least 25% of your business gross earnings each quarter.
You can pay your federal quarterly taxes online at http://www.irs.gov/payments. When you do that *PRINT* *YOUR* *RECEIPT* and file it with your business records. Three rules to keep in mind when dealing with the IRS.
- You are guilty until proven innocent.
- The burden of proof lies on the accused (that would be you!) and not the accuser.
- If it's not in writing, then it *did* *not* *occur*
Finally, if your state taxes personal income you will also need to pay your state taxes each quarter. How you pay your state, depends on what state. Some have the ability to pay online while others do not. So you'll have to check with your state's department of taxation or revenue website to see what payment methods are available.
IRS quarterly tax due dates for the 2019 tax year are at https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2
