It is said that small to medium sized businesses making a moderate revenue or profit should pay 90% of estimated taxes during the year so as to not give a sudden shock to the business bank account at year end.
- Make sure your bookkeeping is up to date.
- Generate an income statement – profit and loss.
- Estimate how much tax you owe to the IRS based on the income for the quarter.
- Compare this year’s taxes to last year.
- Choose your payment method.
- Enter 90% of your quarterly estimated tax as your payment. Do not overpay.
- Save your payment receipt.
- Check the IRS website to see your payment reflected.
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