When You May Have to Pay Estimated Taxes
The General Rule:
If you expect your 2014 federal tax liability to be at at least $1,000 (or more) after taking into account withheld taxes and refundable credits, you should make quarterly estimated tax payments unless you expect the withholdings and credits to be at least 90% of your 2014 total tax, or, if less, 100% or 110% of your total tax for 2013.
The 100% test applies if your 2013 adjusted gross income (AGI) was $150,000 or less, $75,000 or less if married filing separately in 2014.
The 100% test applies if your 2013 AGI exceeded the $150,000 or $75,000 threshold.
For Freelancers and independent Contractors
- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!
Have an accounting or bookkeeping question? Email it to me.
- Return to the Business Taxes Table of Contents to find related links