Video instructions and help with filling out and completing Form 2220 Quarterly

Instructions and Help about Form 2220 Quarterly

Mark from Fort Lauderdale Florida asked the question do I need to pay quarterly estimated tax payments or can I just wait and pay my taxes by April 15 unfortunately there's no easy yes or no answer to this question mark so stay tuned to learn more about your options obligations and deadlines when it comes to paying your income taxes welcome to this episode of accounting and tax tips smart strategies for small business success with certified public accountant Tina moe did you know that federal income taxes are considered pay-as-you-go taxes the IRS has very distinct guidelines on how much and when to pay your income taxes and it can cost you additional money in penalties and interest if you don't abide by these rules you may be required to pay estimated taxes if you expect to oh more than $1,000 or if your withholdings are going to be either less than 90 percent of your current year tax or a hundred percent of your previous year tax and possibly 110 percent if your income exceeds certain thresholds but like 90 percent of all tax laws written there are exceptions to this rule for instance if you didn't owe any tax in 2013 you would not have had to pay quarterly estimated taxes throughout 2014 and even if you do end up owing taxes for 2014 you're still considered in safe harbor and won't owe any penalties safe harbor simply put means that your 2014 withholdings or quarterly estimated tax payments meet or exceed a minimum amount of tax from your 2013 tax liability and therefore even if you owe a ditional taxes at tax time you won't incur any underpayment penalties the other good news is the IRS is not picky about how they get their income taxes from you you can increase your withholdings through your employer or you can make your quarterly estimated tax payments these tax payments are due four times a year on April 15th June 15th September 15th and January 15th of the following year these payments can be made using form 1040 e s and mailed by the due dates to the IRS website address of record for your state you can find this in the IRS website at the web address on your screen it's important that you seek advice from a tax accountant to help you calculate the proper amount of tax to pay in order to avoid penalty if you have a tax question please email me at Tina at AC T services dashing calm and I'll make it the topic of a future show for more information on this and other topics visit my website at WWE thank you for watching this episode of accounting and tax tips with tina MO for more great information visit Tina's website at www.att.com/biz TV shows