Just realized my old boss was right about paying quarterly taxes

When I started my own flooring business, I thought I could just pay my taxes once a year. My old boss from the shop kept telling me to send quarterly payments, but I figured it was just extra hassle. Then last April, I got hit with a $1,200 penalty for underpayment, which he warned me about. Has anyone else learned this the hard way after going solo?

3 comments

3 Comments

alex_wilson7919d ago

Yeah, that penalty hits hard. Set up automatic quarterly payments now.

jordanblack19d ago

My cousin got hit with a $900 penalty last year for the same thing. I saw a post from alex_wilson79 about setting up automatic payments and that's the real fix. The IRS doesn't care about your excuses, they just want the money on time. It's one less thing to worry about if the system just handles it for you.

clark.alex18d ago

Saw a thing online where a guy said he puts the payment dates in his phone calendar with a reminder a week early. That way he still has to send it manually, but he never forgets. The automatic way is probably smarter, but I like having that extra check.