The law requires us to pay taxes in a timely manner, either through our w2 or via estimated taxes. Did you recently start a business or become a consultant in the past year? If you did and expect to make more than a few thousand dollars, paying estimated taxes will help you avoid paying lots of tax (and possibly interest and penalties) come filing time. Paying estimated taxes also enables you to incorporate this expense into your budget. The IRS and Massachusetts Department of Revenue welcome estimated payments and even will send you estimated payment vouchers at the beginning of each new tax year to make sure you know where to mail the payments! The payments are due 4 times a year, in April, June, September, and January. It is very important to consult your qualified tax advisor when making these payments to insure that you are not overpaying or underpyaing by too much!
Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years. Please feel free to contact him anytime and let Erock Tax take care of you!