July is here, Q3 is well underway and Q2 estimated tax payments for Independent Contractors should have been completed. Did you know that the IRS requires all Independent Contractors to estimate the profits of your business and make quarterly estimated tax payments? They will also penalize you for not making these payments.
Your quarterly payments include self employment tax, federal, and state income taxes. The self-employment tax equates to the social security and Medicare withholdings paid through a company for employees. If you work with a business services provider, such as ATBS, they will provide these quarterly tax estimates for you, available online for easy downloading. Our partnership with ATBS is just one of the many benefits CFI is happy to offer to our Owner Operator Professional Drivers!
If you're already a pro at paying your taxes as an independent contractor, you may be wondering how things are changing this year. We recently invited a member of the ATBS team to join us for a Your Voice Is Heard podcast episode where we learned about the ramifications of the Tax Cuts and Jobs Act of 2017. Watch the video here to learn more!
Watch The Video:
Looking for more smart tax strategies for Owner Operators? We have partnered with ATBS to release a new free eBook, An Owner Operator's Guide to Paying Less in Taxes. Get your download of the book today.