At JAF CPA LLC, we’re committed to helping you navigate the complexities of tax compliance with ease and confidence. If you paid too little tax in 2024, it’s not too late to avoid unexpected penalties by making your fourth quarter estimated tax payment by January 15, 2025.
Here’s what you need to know:
Why You Should Pay Estimated Taxes
The U.S. tax system operates on a pay-as-you-go basis. This means taxes must be paid throughout the year as income is earned or received, either through paycheck withholdings or quarterly estimated payments. Failing to pay enough throughout the year can lead to penalties and fees when you file your 2024 tax return.
If you’re unsure about your tax obligations, our experienced CPAs can review your financial situation and help you make the right estimated payment to stay compliant.
Who Should Pay Estimated Taxes?
Taxpayers with income not subject to withholding—such as self-employed individuals, freelancers, and independent contractors—are required to make quarterly tax payments.
You may also need to make an estimated payment if:
– You owed taxes on your most recent return and want to avoid a repeat.
– You switched from itemizing deductions to taking the standard deduction.
– You’re part of a two-income household.
– You receive non-wage income, such as dividends, interest, or rental income.
– Your tax withholding hasn’t kept up with your income.
If any of these apply to you, we’re here to provide personalized guidance to help you stay on top of your tax obligations.
Read Also: Why Small and Medium Businesses Need the Services of JAF CPA
What Types of Income Are Taxable?
Remember, most forms of income are taxable, including:
– Earnings from the gig economy and side hustles.
– Digital assets, such as cryptocurrency and NFTs.
– Unemployment benefits.
– Refund interest.
– Year-end bonuses, stock dividends, and capital gains from investments.
Late-year financial transactions, such as selling stocks, property, or other assets, can also impact your tax liability. Our team can help you assess these transactions to ensure you’re properly accounting for all taxable income.
Why Work with a CPA?
Understanding and meeting your estimated tax obligations can be complex, especially with today’s evolving tax laws. Partnering with a trusted CPA ensures you’re not only meeting deadlines but also maximizing deductions and minimizing penalties.
At JAF CPA LLC, we specialize in helping individuals and small businesses stay ahead of tax deadlines while optimizing their financial strategies. Whether you need assistance calculating your estimated tax payment or planning for the year ahead, we’ve got you covered.
Act Now to Avoid Penalties
The deadline for fourth-quarter estimated tax payments is fast approaching. Don’t let unexpected penalties derail your financial goals
