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.
Love this post in our Business of Blogging Series? You might also enjoy:
Separating the Blogging Myths from the Blogging Truths
Deciding on a Business Entity for your Blog
Obtaining a Tax ID Number and Proper Licenses to Run Your Blog Business
Start Making Money on Your Blog
Creating and Maintaining an Organized Bookkeeping System for Your Blog
Tracking Blog Expenses the Right Way
How to Create a Budget for Your Blog
Making Smart Investments in Your Blog Business
Hiring an Expert to Manage Your Blog Finances