Written by Reginald Chan on September 22, 2020

How to Pay Quarterly Estimated Tax on Time?

Paying tax is an essential role individuals need to play in society. Paying taxes on time is not easy for everyone. Most importantly, if they live on a hand to mouth basis. Only rich people are the ones who do not have a hard time paying taxes. However, anyone can pay tax on time, like how the rich do without any problem. It is possible if they have self-discipline and dedication. If they have a plan and commit themselves to it, paying taxes on time won't become a hassle and problem to them. Quarterly taxes is one of the known taxes individuals need to pay, which is common among freelancers. It is how these self-employed individuals pay for their taxes. Wherein it varies on their income. There, estimating it ahead of time is essential for them. If you are also a freelancer and you want to know more about how you can pay your tax on time, the following are ways of how you can do it.

Calculate

Every year or every month, inflation takes place in all countries around the world. If you are a taxpayer, you must be aware of the inflation rate the country you live in has. It will help you with this step that you must do, which is calculation. You must calculate estimated taxes you need to pay depending on the inflation rate to know how you will divide your money. If you are having a hard time in math, you can use an online application that can help you calculate your quarterly taxes. It will make your life easier, and if you have a business, it is going to be on your advantage. 

Budget

If you do not have overflowing money, learning to budget your money is essential. It is a vital skill that everyone needs to learn and practice. Hence, teach your kids to budget money while they are young. It will teach them accountability, responsibility, and the value of money. And when they are old, they will not have a hard time budgeting their money to pay their taxes. If they don't know how to budget, there is a tendency for them to have money problems in the future. They might drown themselves in debts and loans. It is the same with freelancers when they do not dedicate themselves to estimating their taxes ahead of time. Wherein they can have debt and loan problems. Therefore, if you are a parent, practice the modeling of budgeting money. It is for your family's financial stability and security. It is also a way of influencing your kids. 

Schedule

The art of scheduling is also essential in paying your quarterly taxes. You must be aware of your scheduled paying of the tax you owe. If you know the schedule, you must not have any expensive activities for that week or month of paying taxes to avoid spending the payment for your tax. People who do not have any schedule of activities often end up spending their saved money on their taxes. Therefore, if you have a hard time scheduling, practice it because it is a vital part of life. 

Early Notification

Being notified a week or month because your scheduled paying of taxes is an ideal way to remind yourself. If the company does not inform and send notifications to you early, you should find ways to do it yourself. Use the technological advances society has, there are many ways of doing this. If you do not receive notifications before the scheduled date of paying your taxes, there might be additional charges for you. Most importantly, if you realized it late and weeks or months passed by already.

Tracking

To not lose track of paying your quarterly estimated tax on time, you must keep track of it. Through having a record of everything by tracking your taxes, you can also ensure that your tax refund is accurate and complete. You will have proof of payment whenever something goes wrong. Through this, you can also learn to track your expenses. You will have an idea of where your finances go the most, and you can decide if it is essential in your life. If you are spending on something that you need, and not you want. Remember, everything you spend your money to has taxes. Therefore, you should spend your money wisely. 

The following shows that paying your estimated quarterly taxes is hard if you do not practice any process for it. Without records, estimations, and schedules, you can encounter problems. You might pay overdue, forget to pay, have interests, and more. Also, if you do not have any record of your expenses, you might spend money on unnecessary things that you do not need. If you are not crazy rich, you must use and spend your money wisely. You should make sure that your taxes are a part of your budget, and you must always have an extra for emergencies and savings.

Article written by Reginald Chan
A meticulous entrepreneur by nature, Reginald is a sought-after success coach, digital marketing consultant and TEDx speaker from Asia. Currently, he teaches others how to make money online for free.

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