Estimated tax payments….

Estimated tax payments, as mentioned in my previous post, can be paid based on your current years tax obligation. If using this method, you need to make tax payments equal to 90% of your current years tax obligation. If most of your income comes at the end of the year, you can annualized your income (make smaller tax deposit early in the year, large later) and thereby avoid a penalty.

About the author

Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. Since 2002, he has owned his own small business, Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.