If you are an independent contractor and get issued a 1099, you obviously know that income tax is not being withheld from your paychecks like it is with W-2 employees. As a result, you owe the Virginia Department of Taxation and the IRS estimated taxes.
The way estimated taxes work is that estimated tax deposits are due on a quarterly basis, which is based off of how much money you have earned for that quarter. However, because this amount can be substantial and difficult to put aside and save, many people find it beneficial to make smaller deposits every time they get paid. By doing it this way, you dont have to worry if you will have the money when taxes are due at the end of the quarter.
For help resolving your tax problems, please contact the Sodowsky Law Firm in Fairfax at 703.476.1176. An experienced tax attorney can assist you with your tax debts. Call us today.
