Episode 310

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Published on:

12th Sep 2024

Understanding and Managing Estimated Tax Payments for 2024

About the Guest(s):

Kerrie Beene: Kerrie Beene is a CERTIFIED FINANCIAL PLANNER™ at the Root Planning Group. With extensive experience in personal finance, Kerrie is dedicated to helping clients navigate their financial journeys. She specializes in providing practical advice on budgeting, investing, tax planning, and more. Her approach is centered around making complex financial topics understandable and actionable for everyone.

Episode Summary:

In this insightful episode of the Money Roots podcast, Certified Financial Planner Kerrie Beene takes the spotlight to delve into the essential topic of estimated tax payments. With her wealth of knowledge, Kerrie provides a thorough breakdown of what estimated tax payments are, who needs to make them, and the crucial timelines involved. Whether you're self-employed, an investor, or earning rental income, this episode is packed with valuable insights to help you stay ahead of your tax obligations.

Kerrie begins by explaining the concept of estimated tax payments, highlighting their importance for individuals who have income not subject to withholding, such as freelancers, landlords, retirees, and those with side gigs. She discusses the general rule of thumb for those who need to make these payments, emphasizing the significance of being proactive to avoid any surprises during tax season. Kerrie also outlines the quarterly deadlines for estimated payments and the potential penalties for underpayment, stressing the benefits of staying on top of your tax game.

Moving forward, Kerrie provides actionable steps on how to determine the amount you need to pay and offers multiple methods for making these payments. Whether you're paying online, by mail, or through automatic withdrawals, she ensures you have the knowledge to choose the most convenient option for you. Throughout the episode, Kerrie emphasizes the importance of consulting with a tax professional to ensure accuracy and avoid penalties. This episode is a must-listen for anyone looking to manage their estimated tax payments effectively and reduce the stress of tax season.

Key Takeaways:

  • Importance of Estimated Tax Payments: Understand why estimated tax payments are crucial for those with income not subject to withholding.
  • Who Should Make Payments: Learn about the different types of individuals who need to consider making estimated tax payments, from freelancers to retirees.
  • Due Dates and Penalties: Get to know the quarterly deadlines and the consequences of missing these payments, including potential penalties.
  • Calculation Methods: Discover how to calculate the amount you need to pay based on last year's tax liability or this year's estimated income.
  • Payment Options: Explore the various methods available for making estimated tax payments, including online payments, mail, and automatic withdrawals.

Notable Quotes:

  1. "Estimated tax payments are simply just prepayments of your income that the IRS expects you to make throughout the year."
  2. "If you expect to owe at least $1,000 in taxes when you file your return and you haven't paid enough through your withholdings, you'll probably need to make estimated tax payments."
  3. "The IRS wants its cut as you earn that income, not just at the end of the year when you file your tax return."
  4. "Being proactive and taking care of your estimated tax payments ahead of time can help you avoid penalties and make tax season less stressful."
  5. "Always reach out to a tax professional if you're unsure about your tax obligations to ensure you're doing everything correctly."

Resources:

Stay tuned to the Money Roots podcast for more episodes packed with practical financial advice and insights that can help you cultivate a thriving financial future. Don't forget to subscribe to never miss an episode!

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About the Podcast

Money Roots
Money Roots with Amy Irvine
Welcome to "Money Roots," the podcast where personal finance becomes personal. Join host Amy Irvine, CEO of Rooted Planning Group, as she demystifies the world of finance and makes it approachable for everyone, from beginners to financial experts.

In each episode, Amy and her guests dig deep into the financial soil, planting the seeds of financial knowledge and helping you nurture your financial future. Whether you're looking to build a solid budget, invest wisely, or plan for retirement, "Money Roots" has you covered.

Get ready to explore practical advice, inspiring stories, and expert insights that will empower you to take control of your financial destiny. It's time to grow your money roots and thrive financially!

Subscribe to "Money Roots" now and join Amy on this exciting journey to financial empowerment. Let's put down some roots and flourish together.

About your host

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Amy Irvine

As a kid, I always liked numbers. I would spend hours creating math problems and solutions. Whenever I wanted to play math teacher, my brother was forced to be my student! Given my love of facts and figures, it’s really no surprise that I chose a career where I work with numbers.

I believe that you can use your dollars and cents to create and live a meaningful life unique to your own dreams and desires. I started Rooted Planning Group because I wanted to offer financial PLANNING services. Our profession has a tendency to focus on “assets under management,” but I wanted to focus on the journey of your life (what I refer to in the podcast as your financial “vineyard”). I truly believe that, like wine, life and finances have different palettes that should be celebrated and not judged.

My journey as a business owner was not a direct path; it’s more of a long and winding road. Over the course of the past 30 years, I’ve worked in various financial services positions, but I’m most proud of the ensemble of women that I’ve brought together at Rooted Planning Group.

I am the author of Uncork Your Finances and the podcast host of Money Roots.

I also co-founded the Southern Tier Women's Financial Conference in 2014, an annual event dedicated to collaboration, networking, and financial education for women.