Now that Tax Day is passed, it’s a good time to take stock of your situation, and make arrangements to be better prepared for next year. One of the ways you can do this is by setting up quarterly payments if you own a business or are self-employed.
As Forbes reports, the IRS is with the times, making it easy for you to pay your tax bill four times a year, as is expected of you. There’s no reason to make your quarterly estimated tax payments with the help of vouchers and checks and trips to the post office. Instead, you can use the Electronic Federal Tax Payment System (EFTPS) to manage your tax payments.
Set Up Quarterly Estimated Tax Payments
When you are self-employed, and you expect to owe at least $1,000 in taxes, the IRS expects you to pay quarterly, instead of waiting until the end of the year. In the past, I’ve had problems sending my payments on time, since I often forgot when quarterly payments were due.
You can handle all of this automatically now, though. You can go online one time, and enter your banking and personal information into the EFTPS, and then schedule your quarterly tax payments for the entire year. This means that you don’t have to worry about it at all later on.
As long as you have it set up to reflect in your personal finance management software, you shouldn’t have a problem. This is just one more way that you can automate your finances, and ensure that you don’t run afoul of the IRS when it comes time to pay taxes as a self-employed person.