Now that you’re making money on your blog, you’ll need to pay quarterly estimated taxes. If you traded in your 9-5 day job for your blog business, you may not have even heard of quarterly estimated taxes. Here’s a quick rundown for you:
If you worked for someone else and received a paycheck, taxes were already withheld and you didn’t have to worry about them. However, if you’re self-employed, you’re still required to pay those taxes. Those come in the form of quarterly estimated taxes. Quarterly estimated taxes cover social security, federal, and state taxes. You’ll need to pay quarterly taxes if you anticipate having a tax bill of $1,000 or more for your blog this tax year.
Here’s how to pay quarterly estimated taxes for your blog business:
Use Form 1040-ES to estimate how much you owe. A good rule of thumb is to take what your projected income is for the year, and divide by four. Take that number and multiply by 15%. This is the amount you’ll owe the IRS for your quarterly taxes. This amount is not exact though, and you’ll need to reference last years’ tax returns and follow the instructions on Form 1040-ES to determine how much you owe.
Quarterly estimated taxes are due on April 18th, June 15th, September 15th, and January 17th 2016. You can pay all four installments by April 18th, or submit your quarterly payment by each of these deadlines. The IRS allows you to pay quarterly estimated taxes online, by phone, or by mail.
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Ben Sutton is the founder of Mazuma USA, an accounting firm providing tax, bookkeeping and payroll services to small businesses. Since founding Mazuma, Ben has established himself as an expert in the small business world. He’s still driven by that same desire to provide accounting help to all small businesses – from photographers, bloggers and creatives to lawyers, doctors, and dentists, everyone needs affordable accounting help. Ben is a Certified Public Accountant, and a member of the American Institute of Certified Public Accountants. But Ben considers his greatest achievement and credential to be his happy wife and four children.