Uncle Sam wants your tax money ... now. So, if you aren't sending the IRS enough money in your quarterly tax installments, you may need to pay an extra interest-rate penalty.
You can hold onto your cash longer if you qualify for any one of three IRS-approved "safe-harbor" methods of calculating your estimated tax payments.
Advice: Switch to the safe-harbor method that enables you to pay the least amount of estimated tax during the year. And don't feel the need to wait until year-end to switch. Nothing in the tax law says you must use the safe-harbor method that's worked best for you in the past, or even the method you used earlier this year.
Choose one of 3 methods to calculate estimated tax
You're required to pay your annual income tax in quarterly installments or through
The quarterly due dates for the tax payments are April 15, June 15, Sep...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Dispel 'phantom income' on family loans
- Lawsuits on the rise: Audit your policies to prevent litigation
- Employee eligible for unemployment comp if he quits because hours have dried up
- Follow new guidance on surtax collections