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Here's how to set up and pay quarterly estimated taxes: WHO NEEDS TO PAY Self-employed, freelancers, 1099 contractors. Anyone with income that doesn't have taxes withheld. If you expect to owe $1,000 in taxes for the year, you're required to pay quarterly. HOW TO CALCULATE YOUR PAYMENT (SAFE HARBOR) Take your TOTAL tax bill from last year's return (Form 1040, Line 24). Divide by 4. Pay that amount each quarter. This guarantees no underpayment penalty even if you owe more at filing time. If your
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Here's how to set up and pay quarterly estimated taxes: WHO NEEDS TO PAY Self-employed, freelancers, 1099 contractors. Anyone with income that doesn't have taxes withheld. If you expect to owe $1,000 in taxes for the year, you're required to pay quarterly. HOW TO CALCULATE YOUR PAYMENT (SAFE HARBOR) Take your TOTAL tax bill from last year's return (Form 1040, Line 24). Divide by 4. Pay that amount each quarter. This guarantees no underpayment penalty even if you owe more at filing time. If your
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