How do I calculate my quarterly taxes?

There are different methods for calculating quarterly taxes, yohanny. I'll share them below so you can determine which one best suits you.

The IRS offers two ways to compute and settle quarterly taxes. The first is annualizing current-year taxes, where you assess income and deductions for the year, ensuring that you pay at least 90% of your expected tax. If your revenue increases, you can adjust quarterly payments accordingly. Thus, it's for fluctuating incomes, such as seasonal businesses.

The second is a simpler method, the estimate of taxes using prior-year returns. This involves taking the previous year's tax amount ($5,000) and dividing it by four ($5,000 / 4) for quarterly tax installment ($1,250). Moreover, the percentage increases to 110% ($5,000 x 110%) if your adjusted gross income exceeds $150,000. Therefore, this becomes straightforward for similar or higher earnings. Check out this link for more details: Estimated taxes: When and how to make payments.

Furthermore, QuickBooks evaluates federal income and self-employment tax by applying relevant tax rates to your total taxable profit, including any personal income. Meanwhile, self-employment tax includes Social Security and Medicare rates based on your business profit. Here's an article for the things you can do to get a more accurate analysis: Automatically estimate your income tax in QuickBooks Online.

Once you're prepared, we can help you file your 2024 business taxes in the program by scanning this reference: QuickBooks Live Tax in QuickBooks Online.

Bookmark these resources to know the various reports available in your subscription and how to memorize, print, or export them: 

• Reports included in your QuickBooks Online subscription
• Run reports in QuickBooks

Quantifying quarterly taxes is vital to prevent penalties. Please leave a message below if you have more concerns. We'll do whatever it takes to assist you further. Have a great day.