First Year of being an IC.. be prepared.. for taxes
As an Independent Contractor, you are your own boss. Everyone loves the joke..” If you see me talkingto myself, I am in a staff meeting”. The real joke should be if I look confused it is probably because allyear is tax season for the self-employed.But don’t be scared.. just be organized.
This year in 2020 is different for everyone with thePandemic/COVID-19 but it is in your favor. It has given you more time we hope to get your quarterlytaxes organized. Don’t forget as a member we have you covered witha Tax Calculator you can find onthe Member Dashboard. We also have a nifty tool for you to dream up your perfect salary anddetermine how many hours it will take to get you to that number.
Who must pay estimated taxes? If you file as an individual, soleproprietor, partners, and S Corporationshave to make estimated tax payments if you expect to owe tax of $1000 or more when your return isfiled then you need to pay.
Schedule for 2020- different from a normal year:
January 1 to March 31-due July 15th-extended
April 1 to May 31st-due July 15th-extended
June 1 to August 31-due September 15thS
eptember 1 to December 31-January 15 of 2021
Always remember this is your postmarked date-so ensure that is on your envelope to the IRS! OR youcan file using the Electronic Federal Tax Payment System (EFTPS)-www.eftps.gov.Get in the habit of setting up a good tracking mechanism in your Google Calendars or hire an accountantthat updates this information for you.
It is still your responsibility to ensure this is accurate and timely.Keepthose receipts, keep track of mileage ( highly suggest Quick Books for tracking), spiffy up, and keepthat home office updated-make your deductions work for you.