Every January, people wait for their W-2s and other tax forms to arrive in the mail so that they can get their information in order before the April filing deadline. While some people have plenty of tax taken out of each paycheck to cover what they owe the government, others are self-employed or don’t have enough taken out and end up owing more when they file their taxes. If you’re in the latter group, it’s important that you include taxes in your monthly or yearly budget. As your financial advisor in Columbus, rebel can help you plan for what you may owe in taxes each year.
Taxes such as Social Security, Medicare, and state withholding should come out of each check, but for self-employed individuals, those taxes have to be paid on an estimated basis. These payments can be made quarterly through the U.S. Department of the Treasury’s Electronic Federal Tax Payment System (EFTPS), but if you fail to budget for those payments and try to make it all up at the end, you could be left with a large tax bill come April 15th. Our financial team will help you develop an ideal budget that includes tax payments and keeps you from experiencing stress every tax season.
To learn more about where your taxes go, and how to best save for those estimated payments, contact us in Columbus today. We can help you build a sound strategy for your money, and save wisely for any unexpected situations. We look forward to speaking with you!