In this article you will learn about estimated taxes. For further information on estimated taxes call on QuickBooks phone number
What are estimated taxes? The IRS has two basic ways in which it taxes a person’s income:
Withholding- When your employees takes taxes out of your each paycheck then it known as withholding. This withholding goes toward social security, Medicare taxes and
Estimated taxes- In case you are self-employed and work for yourself then you need to do your own withholding. You yourself have to estimate your expenses, deductions, income and pay taxes on the estimates on a quarterly basis.
When you are required to make payment on your estimates 4 times in a year, then it is called “quarterly” taxes. This Quarterly payment goes under your self-employment tax. This tax covers your share of Social Security and Medicare taxes on the self-employed money earned by you. You get to set aside money to cover the tax and send it to the IRS throughout the year because you are your own employer.
QuickBooks-self employed help you pay them by calculating these taxes for you. Good news for you, now you don’t need to calculate estimate amounts all by yourself.
QuickBooks self-employed helps you in calculating your federal quarterly payments. It calculates estimated taxes for self-employed people with service-based businesses.
Types of taxes which are not calculated by QuickBooks self-employed:
QuickBooks self-employed doesn’t calculate complicated tax scenarios such as:
• Medical expenses, stock payouts, and 401K draws
• One-time lump sum distributions
• Special-cases standard deductions (if you’re blind, over 65, etc.)
• Tax credits
• State income taxes
• Sales tax
• AGI phase outs and alternative minimum tax (AMT)
• Children’s interest
If you feel the need to calculate such taxes, you should contact your accountant.
How to find what your estimated payments will be
There are signposts throughout the app about due dates and payments. To know more, click Taxes present in the navigation bar and choose Quarterly taxes. Now you’ll be able to see the quarterly schedule, amounts you’ve paid and recommended payments.
You can click on any quarter to extract details about your income, quarterly profit, deductions, payments, and more. You can view your projected profits for the rest of the year and your tax profile, which are a part of estimated tax calculations.
Also, you can look at your year as a whole and make out your biggest deduction. Select Taxes in the navigation bar and then choose Annual taxes. Now you’ll be able to see details about your business expenses and business expenses translated into deductions along with your taxable business profit. You can even download a tax summary (PDF) or tax details (XLS) for the year containing all the information.
For more information on estimated tax call on QuickBooks phone number.