Think you get an income that comes free of taxes? Think again! If you collect money of any kind, chances are you will be required to pay taxes on it.
Untaxed money can come from a variety of sources. It can come from a full-time job or as a business owner. It also can come from investments like stocks and bonds. If you were divorced before 2018, alimony may be taxable. Found yourself on the stage of The Price Is Right lately? Prizes and cash winnings are taxable! You’ll have to let the IRS know of all income, maybe even your inheritance from Aunt Sally.
It should go without saying that ignoring your estimated tax duties is not a wise choice. Should you end up owing $1,000 or more in April, you might have underpaid your tax bill. And that could result in you owing added penalties and interest!
To keep yourself from getting any surprise tax bills once Tax Day rolls around, you could be paying estimated taxes on a quarterly basis. That’s right! Did you know that you can file your estimated taxes due on any untaxed income for the year quarterly. This is a great system because it allows you to not only avoid any surprises, but also pay in segments rather than one big bill. You can set this up yourself, or you can have your accountant help you calculate the amounts and set up the payments.
Are you already panicking at the prospect of struggling through worksheets and filing even more tax returns? Contact us today to help calm your nerves! Elevate Accounting Solutions has the experience you need to review your back taxes. We can also craft a strategy for getting ahead of the tax bill in the future.