If I am reading this right,
I didn't know this was a thing
I didn't know this was a thing
It is a thing for small businesses. I pay my estimated federal and state taxes on a quarterly basis. If I miss a target date then I pay a small penalty based upon the amount and how late I am.
It can also apply to personal taxes. I purposefully underpay every year for a variety of reasons, but some recent changes got things whacky and I was waaaay underpaid. IRS didn't like that.It is a thing for small businesses. I pay my estimated federal and state taxes on a quarterly basis. If I miss a target date then I pay a small penalty based upon the amount and how late I am.
My customers send me 1099 forms at the end of each year based upon how much they've paid me for that year.
Your tax calculation software or your CPA can tell you what you should pay an estimated taxes by quarter for the next year. If you pay less or not on time, then there is a penalty.
Anyone know the interest rate before Oct 1st?
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