Does Your Income Swing Wildly? Standard Quarterly Tax Advice Is Setting You Up for Penalties

Описание: Does Your Income Swing Wildly? Standard Quarterly Tax Advice Is Setting You Up for Penalties


If your income swings wildly from month to month, the standard quarterly tax advice everyone gives you is setting you up for penalties. In this video, I share what actually protects you when your income isn't predictable.
Here's what actually protects us:

Use the safe harbor method: Pay 100% of last year's tax (or 110% if you made over $150K), and you're penalty-proof even if you have a massive Q4
Better yet, switch to the annualized income method so we only pay tax on what we actually earned each quarter instead of pretending every quarter is identical
Keep a dedicated tax reserve account with 25%-30% of every deposit that hits your business account so the money is there when estimates are due
Set calendar reminders for April 15, June 15, September 15, and January 15
Track your actual quarterly income in a simple spreadsheet
Adjust each payment based on real numbers—not guesses

The annualized income method is a game-changer for freelancers, consultants, and anyone with unpredictable income. It matches your tax payments to your actual earnings, not an arbitrary average.
Why did no one tell us about the annualized method sooner? Comment below because most of us learned this the expensive way.

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