If you work for yourself, it can be very easy to simply forget that you need to pay taxes. Often, you get going, happy with your earnings, and are then surprised when you realize that even with various deductions (including business use of your home), you owe quite a bit. This can be shocking – and
discouraging. The key is to set up a system so that you pay your estimated taxes throughout the year.

The IRS has an option that allows you to pay your estimated taxes on a quarterly basis. What I like to do is figure 15% of my income for this. Each month, I take that 15% and put it into a high-yield online savings account. This garners me a little extra cash on the money I intend to pay to the IRS. Then every three months, I take out what I put in and send it along to the IRS.

What with deductions and what-not, I end up getting an income tax refund, rather than having to pay a great deal. The key is remembering that Uncle Sam wants his cut, and then planning ahead to make it less onerous.

IRS , personal finance, financial planning, finances,
financial goals, online savings account , pay taxes, business use of home