Quarterly Tax Payment Checklist

Making estimated quarterly tax payments helps business owners avoid penalties and manage their cash flow efficiently. Use this checklist to stay on track with your tax obligations.

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1. Determine If You Need to Pay Quarterly Taxes

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Steps to Take:

1. Assess Your Tax Liability – If you expect to owe at least $1,000 in taxes for the year, you are generally required to make quarterly payments.

2. Check Your Business Type – Self-employed individuals, freelancers, LLCs, and S Corps often need to pay estimated taxes.

3. Review Your Previous Year’s Taxes – If your tax situation is similar, use last year’s return as a reference.

4. Consult a CPA – Get professional advice to ensure you meet tax requirements.

 

2. Calculate Your Estimated Taxes

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Steps to Take:

1. Use IRS Form 1040-ES – Provides worksheets to estimate your tax liability.

2. Project Your Business Income – Base your estimate on expected revenue and deductible expenses.

3. Consider Self-Employment Tax – If applicable, factor in the 15.3% tax for Social Security and Medicare.

4. Adjust for Withholdings – If you have a W-2 job in addition to your business, account for taxes already withheld.

 

3. Mark Your Payment Deadlines

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Steps to Take:

1. Know the Due Dates:

   • Q1 (Jan 1 – Mar 31): April 15

   • Q2 (Apr 1 – May 31): June 15

   • Q3 (Jun 1 – Aug 31): September 15

   • Q4 (Sep 1 – Dec 31): January 15 (of the following year)

2. Set Calendar Reminders – Avoid missing deadlines by scheduling alerts.

3. Plan for Holidays/Weekends – If the due date falls on a holiday, payments are due the next business day.

 

4. Make Your Quarterly Payments

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Steps to Take:

1. Choose a Payment Method:

   • IRS Direct Pay – Free and secure online payment.

   • Electronic Federal Tax Payment System (EFTPS) – Requires registration but allows scheduled payments.

   • Credit/Debit Card – Can be used with third-party processors (fees may apply).

   • Check or Money Order – Mail with Form 1040-ES payment voucher.

2. Confirm Payment Submission – Keep a copy of payment confirmation for records.

3. Adjust Future Payments If Needed – If income changes, recalculate estimated payments.

 

5. Keep Detailed Records

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Steps to Take:

1. Save Payment Receipts – Keep digital and paper copies for tax filing.

2. Record Income and Expenses Monthly – Helps track financial trends and avoid surprises.

3. Review IRS Notices – Address any discrepancies or additional tax obligations promptly.

4. Use Accounting Software – Tools like QuickBooks or Xero can automate tracking and calculations.

 

6. Prepare for Year-End Tax Filing

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Steps to Take:

1. Reconcile Payments with Total Tax Liability – Ensure you paid enough to avoid penalties.

2. Gather Financial Statements – Profit and loss statements help confirm earnings.

3. Work with a CPA – Get a tax review to maximize deductions and minimize liability.

4. File Your Annual Tax Return On Time – Report income and payments accurately to avoid issues with the IRS.

 

By following this checklist, you can simplify quarterly tax payments and avoid unnecessary stress. Need assistance? Contact Dylan Razzagone, CPA for expert tax planning.