Tax Refunds & Advice

As a self-employed professional, you are in charge of paying your federal, state, and local taxes. You and you alone need to keep a watch on your income in order to ensure that you are paying the proper amount each quarter. If you miss out and let this situation get out of control, you may find yourself in a bad position.

First off, you need to know how much you should pay each quarter. If you are unsure of how to figure this out on your own, hire a tax professional to assist you. They can offer an estimate based on your past year’s income while also supplying you with the necessary forms.

Take for example a self-employed professional who is paying quarterly taxes based on an annual income of $60k/year. If this person stays on pace earning $5k/month they do not have to change a thing as far as the amount that they pay in taxes each quarter. But if he begins to earn more money, say $10k/month, it is safe to say that paying more in taxes is in store. If you only pay taxes on $5k income per month but earn $10k, you are going to be well behind when your final return comes due.

There is no denying that knowing how much to pay in taxes is a difficult part of being self-employed. That being said, if you are organized and watch your monthly income you should be able to stay on the correct path. It should be your goal to not owe the IRS any money at the end of the year and to not receive a refund. If you break even it means that you were paying the proper amount in taxes each quarter.