If you are self-employed, chances are you should be filing quarterly estimated tax filings four times per year. Estimated tax payments are required because, unlike larger companies, self-employed business owners generally aren't having taxes withheld from each paycheck (if they even have an official paycheck). These quarterly filings must be paid at the federal and state level. The required federal form is the 1040-ES and the Massachusetts state form is 1-ES.
Be careful, because the quarterly deadlines for estimated taxes are usually different from typical calendar quarters. The tax quarters and filing deadlines for 2011 are:
Quarter 1: January 1 - March 31 (estimated taxes due April 18, 2011)
Quarter 2: April 1 - May 31 (estimated taxes due June 15, 2011)
Quarter 3: June 1 - August 31 (estimated taxes due September 15, 2011)
Quarter 4: September 1 - December 31 (estimated taxes due in January 2012)
Estimated taxes can be confusing. If you are self-employed and need to file quarterly, call Edward Connelly at 781-449-8700. We're happy to help and specialize in tax preparation for small businesses.
