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#26: How do I do quarterly tax filings?

Season #1

Episode 26: How do I do quarterly tax filings?

Join Josh and Garrett as they discuss the boring-yet-super-important topic of quarterly taxes!!

3 key takeaways:

  1. Each quarter's tax payment is due 2 weeks after the end of that quarter. Thus Q1 (Jan/Feb/March) payment is due April 15, Q2 is due July 15 etc.
  2. Do you have to pay quarterly estimates?
    • Yes - if your tax liability is over $1000.
    • No - if you look at TOTAL tax payments from ALL taxes (W2, 1099, self-employed, all) and your withholdings from all jobs are going to equal at least 90% of next year's tax liability. (How do you know next year's tax liability? It's a pain to try to figure out, so this one is not super helpful)
    • No - if your withholdings are 100% of your tax liability from last year.
  3. How to pay quarterly taxes
    • Option 1 - Over-withold W2 taxes to cover other tax liability
    • Option 2 - Pay quarterly. Fill out the 1040 ES (estimated) or pay your tax preparer or a reputable company to do it for you.

Bonus tip: Make sure you PAY your estimated quarterly taxes (see links); don't just set them aside in a savings account!

Resources mentioned in this episode:

- https://www.eftps.gov/eftps/

- Form 1040 ES

Want help building or growing a successful financial coaching business? Find resources below based on where you’re at in your journey: