25d • General discussion
đź“Ł Quarterly Estimated Taxes: Avoid Penalties with Better Planning
Running a business is challenging enough — taxes shouldn’t add unnecessary stress.
If you earn income that isn’t subject to withholding (think profits, dividends, rental income), quarterly estimated tax payments may be required to stay compliant and avoid costly penalties.
Let’s break down what you need to know.
âś… Why Quarterly Estimates Matter
The IRS requires taxes to be paid as income is earned, not just at year-end.
If you owe more than $1,000 when you file, you could face penalties.
Smart quarterly planning helps you:
- Avoid penalties + interest
- Maintain steady cash flow
- Prevent tax-time surprises
âś… Who Needs to Pay?
You may need to pay quarterly estimates if you’re:
- A business owner
- Self-employed / freelancer
- Earning rental or investment income
- Receiving income without withholding
Note: Many business owners must make estimated payments personally, even if their business pays tax.
âś… Quarterly Due Dates
Estimated payments are typically due:
- April 15
- June 15
- September 15
- January 15
If a due date falls on a weekend or holiday, it moves to the next business day.
âś… How to Estimate Your Taxes
Quarterly payments are based on your projected:
- Income
- Deductions
- Credits
Many follow the “safe harbor rule” — paying 100–110% of last year’s tax bill. Fast-growing companies should check estimates throughout the year.
âś… Tips to Avoid Penalties
- Meet with your accountant mid-year
- Build estimates into cash-flow planning
- Adjust payments if income changes
- Use safe-harbor rules to stay protected
Stay Ahead of Tax Time
Quarterly estimated taxes don’t have to be overwhelming.
With proactive planning, they become a predictable part of running your business — not a surprise.
How Smith CPAs & Associates Can Help
We support businesses with:
- Calculating quarterly payments
- Planning for tax-efficient growth
- Staying compliant year-round
Book a Free 30-Minute Discovery Call Now! - https://meet.smithcpasassociates.com/meetings/sven-muller/internal-call-with-sven-muller?uuid=ce064c39-29c9-40df-ba84-356d4a53377e
info@smithcpasassociates.com
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đź“Ł Quarterly Estimated Taxes: Avoid Penalties with Better Planning
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