As an independent contractor, I have to pay quarterly estimated taxes like any normal business. I just found out however that “quarterly” taxes does not mean every 4 months. The dates quarterly estimated taxes are due are:
- (01/15) January 15th
- (04/15) April 15th
- (06/15) June 15th
- (09/15) September 15th
You may note that these are intervals of 3,2,3,4. If you make a late payment accidentally however, don’t fret. According to a recently contacted tax expert, if you make a payment 1 month late, and the next payment 1 month early, the government shouldn’t penalize you.
This tax expert also related that the amount you owe each year for estimated taxes (1/4 this number on each “quarterly payment”) is the LEAST of 2 different numbers:
- The amount you paid the previous year
- The amount you should owe this year
This means, unless you think you are going to make less during the current year than the previous (which you better be right about or you can be penalized) that you only have to pay estimates on what you paid in total for the previous year.
On a final note, I am not an expert in the tax law field. As a matter of fact, I know next to nothing. This is just information that was relayed to me that I thought I should pass on. I have not fully researched it, so do not take this information for fact.
