Who Should Pay Estimated Tax? What Are the Advantages of Estimated Taxes?
The advantage of making the U.S. estimated tax payment is that the US taxpayer can spread the taxes for the entire year and avoid paying a large lump sum at one time.
This allows you to effectively plan your personal funds for the year.
At the same time, by making quarterly estimated tax payment, you can avoid forgetting to pay your taxes in the following year, which may result in a penalty.
You are required to pay estimated taxes if you:
1. Expect to pay $1,000 or more in taxes when filing your personal tax return.
2. Expect to pay $500 or more in taxes when filing your company's tax return.
In addition, if you are self-employed, an U.S. citizen or a green card holder, who is living outside the United States, there is no U.S. employer will withhold income taxes for you for each month, and capital gains earned overseas will not be withheld by the United States either, so you must be more careful to plan your U.S. taxes through making estimated tax payment.
USCPA Sophie Luo (羅霞) reminds you that if you do not pay your taxes on time during the tax year or pay enough tax through withholding and estimated tax payments in advance, you may face penalties from the IRS.
If you want to make a further plan for your U.S. taxes, please contact us
USCPA Sophie Luo (羅霞) +886 980919600
or E-mail: ustaxproservice@gmail.com
Also welcome to visit our company website: https://www.ustaxproservice.com
(USTAX Service LLC)