September 15 is the last day for those who give you children to save your tax money for the third quarter of 2021.
The third quarter covers the months of June, July and August.
The fourth quarter covers the months of September, October, November and December.
Yes, tax deductions are the same!
Most child care providers are not required to pay the actual tax (IRS 1040 ES Form Valuation of Population). This is because spouses often have enough taxes to cover up.
You are required to pay an estimated tax if you are single or have a partner who is unemployed or self-employed.
If you do not know if you or your partner have paid in full for the months of June, July and August, you must pay this tax with this form. Your goal is to pay 90% of the taxes you pay this quarter to avoid paying. If you pay more you will be reimbursed.
How do you know how much debt you will incur? If you were in business in 2020 use last year as a guide. If this is your first year, use 20% of your total income (parent-payable plus Food Program expenses) for June, July and August as an independent idea that you will return to.
Lastly, check your records to see if you might have a government tax debt. If so, pay the government tax by September 15.
If you do not have enough money to pay your taxes, send as much money as you can. Not paying the taxes you think you should pay, costs more in the penalty than just writing and paying less than you paid.
The deadline for the fourth quarter of taxes is January 17, 2022.
Note: You can make monthly payments, instead of a quarter, taxable. Doing this may be easier to calculate than paying a quarter of a dollar. It can also be easy to remember to pay each month. To start paying monthly, use electronics How to Pay Federal Taxes (EFTPS).
Tom Copeland – www.tomcopelandblog.com
Image credit: https://www.dontmesswithtaxes.com/2018/04/revised-1040-es-takes-new-2018-tax-law-into-account.html
For more information on the 1040ES forms, see my year Workbook for Family and Family Planning.
Categories: Record Keeping & Taxes, Tax Returns