A First in a Tax Tip Series
One of the benefits of Chamber Membership is that we are always looking for information that can lower your operating expenses and benefit you in your business. We all know that 2018 brings new changes to the tax code. Over the next eight weeks, we will be adding a new Tax Tip to the blog that can hopefully make a big difference in your return.
This week's tax tip: Taxes MUST be paid as you earn or receive income during the year, either through withholding, estmiated tax payments, or a combination of both. A Paycheck Checkup using the IRS Withholding Calculator (click here) can help you see if you need to make an additional payment to avoid an unexpected tax bill or underpayment penalty when you file your tax return next year. You may need to make estimated payments if you:
- have multiple jobs- especially if you don't have each employer withhold taxes
- are self-employed or an independent contractor
- are a representative of a direct-sales or in-home-sales company
- participate in sharing economy activities where you are not working as an employee
- receive pension income