Why quarterly taxes

If you're considered an employee of a company—whether salaried or paid by the hour—you'll likely receive a Form W Form W-2 shows how much money has been withheld throughout the year for federal, state, Social Security and Medicare taxes.

For the income reported on a Form NEC , however, generally no tax has been withheld by the party that paid a self-employed individual for work performed. If you're self-employed, you're responsible for paying both the employer and employee portions of payroll taxes.

In fact, beginning back in for the tax year businesses and corporations must respond, via a line-item question on their tax forms, whether they paid miscellaneous income during the year and whether they issued the appropriate forms. The IRS has established four due dates for paying estimated taxes throughout the year.

Typically, the due date is the 15th for each of the months in which payments must be made. If the 15th falls on a weekend or a federal holiday, however, the due date is moved to the following business day. A payment not postmarked on or before the due date will be considered late and you will likely be penalized. TurboTax Self-Employed uncovers industry-specific deductions. Some you may not even be aware of. Find more tax deductions so you can keep more of the money you earn with TurboTax Self-Employed.

Tips for Paying Estimated Taxes. Estimated Taxes: Common Questions. Claiming the Foreign Tax Credit with Form What is the IRS Form ? Estimate your tax refund and where you stand Get started.

See if you qualify for a third stimulus check and how much you can expect Get started. Easily calculate your tax rate to make smart financial decisions Get started. Estimate your self-employment tax and eliminate any surprises Get started.

Know what dependents credits and deductions you can claim Get started. Know what tax documents you'll need upfront Get started. For example, a landscaping business makes most of its money during the warmer months of the year.

Once you determine the amount to pay, the IRS will accept your money in any number of ways. Instructions for payment can be found at IRS. Methods of payment include:. If you pay online, which you can do any time of the year, be sure to select the tax year and tax type or form associated with your payment. If you pay by check or money order, send the payment along with a Form ES voucher to the address specified for your state or territory on that form.

Taxpayers who live in places subject to natural disasters should note that changes are subject to be made regarding the quarterly due dates for estimated tax payments. A list of applicable declared disaster situations can be found on the IRS website.

How We Make Money. Barbara Whelehan. Written by. Barbara Whelehan is a contributing writer for Bankrate. Barbara writes about a range of subjects, including homebuying, real estate, retirement, taxes and banking.

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