16 Mar Tax Act Tip: The 2018 Quarterly Estimated Payment Challenge
The Tax Cuts and Jobs Act (TCJA) passed in late 2017 made big tax changes, including to individual tax rates. If you are self-employed or retired and pay your taxes on a quarterly basis, calculating your new tax obligation is going to be a little more complicated than usual.
That’s because it could be difficult to estimate your tax obligation under the new tax code, which eliminated personal exemptions, lowered tax rates, suspended many itemized deductions and created a new small business deduction. The first-quarter estimated payment is due on Tuesday, April 17, and penalties are still in place if you underpay your tax obligation.
Here are some tips to handle quarterly payments under the new code:
Taking the time to make changes now will help you make a smooth transition under the new TCJA rules and prevent any surprises at tax time next year. If you have any questions or need assistance to determine your quarterly tax payments, please reach out for help.