Orginizing your Quarterly Tax Payments

from www.banks.com

By Chris Bibey February 20th, 2008
If you are self- employed, you need to pay income tax just like everybody else. The best way to do this is to send quarterly payments on both the federal and state level. By doing this, you will keep up with the rest of the tax payers who have this money deducted from their paycheck each month.
Staying organized is essential if you are going to pay your quarterly tax payments on time. Once you get used to paying these taxes it will more or less become a part of your business. But even then, you always need to be organized.
The amount of quarterly taxes that you pay is based on the income that you earn during that particular period. For this reason, it is essential that you keep close track of every dollar that you earn. This will allow you to know just how much money you are supposed to pay. Remember, if you do not pay each quarter you will have to pay at the end of the year. The bottom line is that paying quarterly taxes is a way of life for self-employed workers.
To set up quarterly payments for the first time, visit a tax professional or certified public accountant. They can give you the proper forms, as well as tips on what percentage of your income to pay, etc. After your first year of filing, you will begin to receive the proper paperwork in the mail for paying federal and state income tax.
All in all, staying organized will make it much easier for you to pay your quarterly taxes with success. As you can imagine, this is not something that you want to get behind on.