Quarterly estimated taxes

Quarterly Estimated Taxes, Calculated for You

If you are self-employed, own an S corporation, or have income with no withholding, you are expected to pay tax four times a year. Most owners we meet either skipped it and got an underpayment penalty, or guessed and owed a big balance in April. We work out the right amount for federal, New York State and New York City, and tell you before every deadline.

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The four deadlines

New York State and New York City estimates are paid together on the same dates.

How to avoid the penalty

You generally avoid the federal underpayment penalty if your payments cover 90% of this year's tax or 100% of last year's tax (110% if last year's income was over $150,000). New York uses similar rules. We pick the method that keeps your cash in your account longest without a penalty.

S corporation owners: use your paycheck instead

If you own an S corporation, you can often skip estimates altogether by having extra tax withheld from your own salary. Withholding counts as if it were paid evenly through the year, so a December payroll can fix a year of missed estimates. We set this up as part of owner payroll.

What the plan includes

Our posted prices

Quarterly estimated tax plan (federal, NY State, NYC)starting at $200 a year
S corp owner payroll with withholding set to cover your tax$275/mo
Personal tax return (includes a basic estimate schedule)starting at $300
Business tax returnstarting at $1,000

Every client gets the exact price in writing before work starts. You get an exact quote in writing before any work starts. Full price list

Common questions

Who has to pay quarterly estimated taxes?

Generally anyone who expects to owe $1,000 or more in federal tax after withholding, which includes most freelancers, 1099 contractors, single-member LLC owners and S corporation owners who do not withhold enough from their salary.

I missed a payment. What should I do?

Pay as soon as you can. The penalty works like interest, so it stops growing once the payment is in. We can recalculate the remaining payments so you catch up.

Do I pay New York City estimated tax separately?

No. New York City resident tax is paid together with New York State estimated tax.

How much does it cost?

Starting at $200 a year for the quarterly plan. If we prepare your return, a basic estimate schedule is included with it.

I'm self-employed and my spouse has a W-2 job. Can their withholding cover my quarterly estimated taxes?

Yes, extra withholding from your spouse's paycheck can cover the tax on your self-employment income. The IRS treats withholding as paid evenly through the year, even if it is increased late, so a new Form W-4 can close a shortfall. On a joint return you generally avoid underpayment penalties by paying 90% of this year's tax or 100% of last year's (110% if adjusted gross income was over $150,000). The fourth quarter payment is due January 15.

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63-08 Woodhaven Blvd, Rego Park, NY 11374 · (516) 518-6678

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