For self-employed individuals, filing taxes can be a complicated process, especially when you’re trying to figure out if it’s better to file your taxes quarterly or yearly. Well, the answer isn’t always straightforward – it all depends on your business model and income levels – but in this blog post, Matt Teeple will break down exactly what you need to know so that you can make an informed decision and avoid any potential tax liabilities.
Filing Taxes When You Are Self-Employed: Quarterly Or Yearly? Matt Teeple Answers
When you’re self-employed, understanding the tax rules can be complicated and time-consuming, says Matt Teeple. When it comes to filing taxes, it’s important to understand the differences between filing quarterly and yearly.
Filing Taxes Quarterly
If you are self-employed, one of the key advantages of filing your taxes quarterly is that it helps you manage your cash flow more effectively. By paying estimated taxes throughout the year in four installments (usually in April, June, September, and January), you can easily ensure that you don’t owe money at tax time. Filing quarterly also allows you to take advantage of any deductions or credits available throughout the year rather than waiting until the end of the year when they may no longer be applicable. Additionally, if you have employees, it’s important to file quarterly so that you don’t incur penalties for late payment of payroll taxes.
Filing Taxes Yearly
When filing taxes yearly, the advantage is that all of your income and deductions can be accounted for in one single tax return. This makes it easy to keep track of everything since only one form needs to be completed. Additionally, if you’re self-employed and expect a large refund or owe a substantial amount in taxes at the end of the year, filing yearly allows you to pay or receive this money all at once rather than having it spread out over four payments throughout the year.
Regardless of which option you choose, there are certain things that should always be considered when filing your taxes. For example, it’s important to keep accurate records of all your income and expenses throughout the year so that you can accurately report them when filing your taxes. Additionally, if you have employees, you must make sure to pay payroll taxes on time in order to avoid any penalties or interest charges.
When deciding between quarterly and yearly tax filing as a self-employed individual, it’s important, as per Matt Teeple, to consider the advantages and disadvantages of both options. For some people, the convenience of having all their information accounted for at once makes filing their taxes yearly a better option, while others may prefer paying estimated payments over the course of four installments throughout the year by filing quarterly. Ultimately, it is up to each individual person to decide which option best suits their financial situation. Whichever option you choose, make sure that you are calculating all the applicable tax deductions and credits throughout the year in order to get the most out of your taxes. Taking the time to understand how filing quarterly or yearly can benefit you will help ensure that you’re paying your taxes correctly and on time.
Matt Teeple’s Concluding Thoughts
According to Matt Teeple, by understanding these differences and taking advantage of the available options, self-employed individuals can better manage their finances and keep more money in their pockets when it comes to filing taxes. With careful planning, filing either quarterly or yearly can be a simple process with plenty of benefits for those who are self-employed.