If you run your business as a sole proprietor, you may need to pay estimated taxes to the IRS throughout the year. People whose income is subject to withholding (i.e., most employees) generally don’t have to pay estimated tax. These payments cover tax liabilities not covered by withholding. If you don’t pay enough tax, either through withholding or by paying estimated taxes, you may be charged a penalty.
Download this checklist to learn how to calculate and pay estimated taxes as a sole proprietor.
You will learn:
- If you need to pay estimated taxes
- What are the exceptions
- What are the deadlines
- How to calculate your taxes
- What forms you need