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Donna Genie explains how to avoid IRS penalties on estimated taxes. Pay 100% of last year's tax in quarterly installments, set aside money in a separate account, or work with a CPA to track income and project what you'll owe.
Donna Genie explains how to avoid IRS penalties on estimated taxes. Pay 100% of last year's tax in quarterly installments, set aside money in a separate account, or work with a CPA to track income and project what you'll owe.
Let's talk about a strategy that can seriously upgrade.
Your tax game.
Estimated payments throughout the year versus One big April hit Business owners think they've got just two Pay.
Everything at once or make quarterly payments.
So here are the three key strategies that you need to know. First, calculate your safe harbor. The IRS gives you multiple ways to avoid penalties. The simplest pay 100% of last year's tax liability through quarterly estimated payments.
Strategy 2.
Cash flow optimization Quarterly estimated.
Payments aren't just about avoiding penalties they're about managing your.
Cash strategically. Set aside the.
Additional tax liability in.
Your own account instead.
Of the IRS's.
So that you can access this as.
A safety net if you need it. Or if your income goes down, you don't have to wait till next year.
To get it back. Precision tracking your CPA should help you see your quarterly income and project.
The tax liability. Don't wait until April to have your taxes prepared. We constantly prepare financial information so you know if your income is up or.
Down over last year.
At the same time.
