Monthly Archives: September 2021

Estimated taxes

I forgot to pay my taxes. Yes, I know it’s September, and no, I’m not talking about my annual tax return. For the last few months, I forgot to pay estimated tax, which is a thing that some individuals and corporations in the United States are required to pay, four times a year. Most people pay their taxes primarily in the form of payroll tax withholding, but as someone who is both self-employed and regular employed, I basically have to estimate my remaining year-end tax burden and pay one-fourth of that every 3 months. These payments are subsequently deducted from my tax bill at the end of the year. If I don’t pay them, there’s an additional “underpayment penalty” of about 3%. Luckily, I can still make payments now and avoid most of that penalty. I typically set up calendar… more →