The Estimated Tax Deadline for Self-Employed Individuals

The Estimated Tax Deadline for Self-Employed Individuals

February 5, 2020

When you’re new to self-employment and freelancing, you get to be your own boss—but that comes at the cost of filing quarterly tax returns. Since you’re not having taxes withheld from your paycheck (usually), the IRS doesn’t want to wait a whole year to get the money. Instead, you’ll pay quarterly estimated taxes every three months based on what you earned previously. Read on to learn more about the self-employed tax deadline in Hayward, CA.

Who pays quarterly estimated taxes?

If it looks like you’ll pay $1,000 or more in taxes annually (and most people do), you will need to file quarterly. Usually, this is for self-employed individuals, freelancers or independent contractors—they’re paid directly by the clients so there is no third party to oversee tax withholding. You’ll pay taxes estimated on what you expect to owe by the end of the year, assuming business is steady, and any overages will be returned.

Of course, if your income severely fluctuates, you might be concerned. Many freelancers and workers in the “gig economy” find themselves without a steady stream of income, especially if they suffer illness, have a “busy season” or simply a shortage of clients. In that case, you might be eligible to use an annualized installment payment method, which would allow you to pay your taxes in increments, even if your income flows unevenly through the year.

Skipping filing quarterly payments will make you subject to a penalty, so be sure to stay on top of the filing deadlines.

How do I file quarterly taxes?

The easiest way to meet the self-employed tax deadline in Hayward, CA is to work with the team at Menjivar & Company CPAs, Inc. We can handle all of your tax needs so that you can focus on bringing the money in.

If you prefer to do it yourself, there are a number of software solutions available for self-employed individuals, which will automatically help you estimate your quarterly taxes and assist you in filing. Then you can mail or electronically file your taxes and payment.

This year, the filing deadlines are:

  • 1st quarter: April 15, 2020
  • 2nd quarter: June 15, 2020
  • 3rd quarter: September 15, 2020
  • 4th quarter: January 15, 2021

Don’t forget to keep detailed records of your taxes and filings, in case of an audit. One of the benefits of working with a CPA is that we’ll not only assist you in filing your taxes correctly and on time, but in the event of an audit, we’ll be able to provide your records and stand by you—and our work.

Meet the self-employed tax deadline in Hayward, CA

Menjivar & Company CPAs, Inc. is your total tax resource in Hayward, CA. We assist our clients in all tax-related services, including accounting, payroll, planning, consulting and more. From individuals to small businesses and corporations, our team has knowledge and expertise you can rely on. Let us help you develop individual and business strategies for your finances so you’ll never dread tax time again.

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