Necessity to Know about Quarterly Tax Dates
Here is an introduction to the different types of taxes and then discuss how freelancer can pay their taxes and what are quarterly tax dates.
In 1913, the Sixteenth Amendment to the U.S. Constitution was developed. The U.S. tax system was set up at both the federal and the state levels. There are different types of taxes – income, sales, capital gains, etc. Federal and state taxes are completely different. Each has its authority to charge taxes. The federal government does not have the right to interfere with the state taxation system. Each state in the U.S. has its taxation system, and it is separate from the other states. Within the state, there may be several laws and regulations that also charge taxes.
Income taxes
Income tax is one of the best forms of taxation. If you earn something in the U.S., you can find the deductions in the form of income tax. Every person who earns in the U.S. has to pay tax according to the U.S. tax laws. This applies for paying taxes at both the federal as well as the state level. Federal taxes in this include social security and FICA. Each state also has its form of income tax that employers and all U.S. citizens have to pay from their earning pay check. If you earn a certain amount in the U.S., you must have to file for both federal and state taxes.
Sales Taxes
Another form of tax that is very familiar in U.S. Law taxation is sales tax. This is the tax that is charged on being purchasing any product or product. This is the tax that is charged on your total purchases. Sales tax is a state tax and varies from one state to another. You have the right to raise the sales tax above the state limit. There are also other rules besides sales tax, such as which terms are taxed and which are not.
If a person has a sole proprietorship, those earnings will be included on their income tax form. There are no taxes on the partnership as a whole but on the earnings passed down to the partners. Partnerships are required to file a tax return, but it is only the international return.
Corporations are separate legal entities and are subject to corporate tax on taxable income and are subject to corporate tax on taxable income. Corporate tax rates are way different than personal tax rates. Corporate earnings are subject to double taxation. Corporations pay taxes are the taxes on the earnings, and then with the after-tax income, they pay stockholders dividends, which are subject to capital gains tax. The dividends are reported on the stockholders’ tax form and are taxed at capital gains tax rates, which is known as the process of double taxation.
How to pay quarterly taxes?
The U.S. taxation system works on the basis which means that you must have paid taxes as you earn. Most taxpayers, specifically the W2 employees, don’t have to worry about it since their employer pays the taxes from their paybacks. But this same system is not done with freelancers. As a self-employed worker, you have to pay taxes to the government. You must pay your taxes four times a year, and these taxes are known as estimated quarterly tax payments.
Use this widget to calculate quarterly tax:
These quarterly taxes are used for:
- Federal Income Tax
- State Income Tax
- Self-employment tax
- Social security
- Medicare
If you are employed, you must pay quarterly taxes. FlyFin helps you in reviewing tax deductions and answering all your tax-related queries to accurately calculate quarterly tax payments in just 5 minutes. This company is helping many freelance workers to avoid tax overpaying. For freelancers, they need to pay quarterly taxes. They can thus take the help of this company to avoid overpaying taxes by finding tax deductions. FlyFin A.I. helps to find out all the possible deductions for quarterly tax payments. This company will help you to find out all your deductions and will calculate your quarterly tax amounts with 100% accuracy.
The common tax deductions for freelancers
Home Office - If you work from home, you can claim the self-employed home office deduction that helps you deduct all the expenses related to your home office. These works from home tax deductions are highly beneficial.
Internet and Telephone Expenses - An internet connection is necessary if you conduct your business from home. So, you can claim the internet tax deduction.
Office Supplies - any equipment or supplies you require to operate your business qualify as a deductible expense.
Education Expenses - You can deduct the cost of your education.
The IRS permits you to deduct any expenses, both ordinary and necessary. So, there are many tax deductions that you can claim as a freelancer depending on your profession.
When to pay your estimated quarterly tax?
In the US, a salaried individual needs to pay taxes 4 times in a year, and therefore, you must know the quarterly tax dates. The due date is 15th April for the period between January 1st to 31st March, it is 15th June for the period between 1st April to 31st May, 15th September for the period between 1st June to 31st August, and 15th January of the following year for the period between 1st September to 31st December.
FlyFin A.I. scans all possible tax deductions. You can simply connect with all your expense accounts, and this company eliminates 98% of your work. The tax members in this company are experts in all aspects of U.S. and international taxes. They ensure 100% accurate tax reviews and preparations. They work especially for freelancers. A.I. in this notifies you whenever there is tax education, and it gives you guaranteed maximum savings. They are trusted financial institutions. They do not need to store any user information such as account numbers, usernames, and passwords. Your personal information is completely secured. You can avail of the services so that you can remember your quarterly tax dates every time and pay your taxes in time.
