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                                                                                                         2018 tax rates and income brack­ets


Tax Rate Sin­gle  Head of House­hold Mar­ried Fil­ing Joint­ly
or Sur­viv­ing Spouse
Mar­ried Fil­ing Sep­a­rate­ly
10%  Up to $9,525   Up to $13,600   Up to $19,050   Up to $9,525
15% $9,526 to $38,700   $13,601 to $51,850   $19,051 to 
  $9,526 to $38,700
25% $38,701 to $93,700   $51,851 to $133,850   $77,401 to $156,150   $38,701 to $78,075
28% $93,701 to $195,450   $133,851 to $216,700   $156,151 to $237,950   $78,076 to $118,975
33% $195,451 to $424,950   $216,701 to $424,950   $237,951 to $424,950   $118,976 to $212,475
35% $424,951 to $426,700   $424,951 to $453,350   $424,951 to $480,050   $212,476 to $240,025
39.6% $426,701 
or more
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A lot of peo­ple work as an employ­ee and their employ­ee with­holds tax­es from their pay­check, and sends it off to the irs for them its kind of a pay as you go type of deal. I m sure you have noticed a nice chunk of your income gone from your pay­check. If you have cor­rect­ly filled out your w4 form when you began your job you get a nice refund come time to file your tax­es.

If you are a con­trac­tor or self employed and you have no tax­es tak­en out. Which means you haven’t paid any tax­es for the year, you are more then like­ly going to owe tax­es unless of course you have been doing some esti­mat­ed tax­es to the irs.

If you are self-employed and expect to owe $1,000 or more when you file your annu­al return, then you must pay esti­mat­ed tax­es on income.  If it’s not through with­hold­ing, then it has to be done by quar­ter­ly esti­mat­ed tax­es. If your busi­ness is struc­tured as a cor­po­ra­tion, you’ll need to pay esti­mat­ed tax­es if you expect to owe $500 when you file

You may owe esti­mat­ed tax­es if you receive income that isn’t sub­ject to with­hold­ing, such as the fol­low­ing :

  1. Inter­est income
  2. div­i­dend
  3. Gains from sales of stock or oth­er assets
  4. Earn­ings from a busi­ness
  5. Alimo­ny


Esti­mat­ed tax­es are the respon­si­bil­i­ty sole­ly of the per­son receiv­ing the untaxed mon­ey. Form 1040-ES will helps you cal­cu­late your esti­mat­ed tax­es and pro­vides vouch­ers to send along with your esti­mat­ed tax amounts if you would like  to pay by check.

The U.S. tax sys­tem works on a pay-tax­es-as-you-earn basis as said before  so the Treasury’s goal is to get any esti­mat­ed tax­es reg­u­lar­ly, too. The IRS has set up a timetable call­ing for esti­mat­ed tax pay­ments four times a year. Although the pay­ments are com­mon­ly called quar­ter­ly, they don’t nec­es­sar­i­ly coin­cide with cal­en­dar quar­ters.

The four esti­mat­ed tax pay­ments are gen­er­al­ly due each year on the 15th of April, June, Sep­tem­ber and Jan­u­ary. But if that date falls on a week­end or on some  fed­er­al hol­i­day, the 1040-ES fil­ing dead­line is pushed to the fol­low­ing busi­ness day.

The IRS would rather for you fig­ure the total amount of tax­es you are going to owe for the year , divide it by four and send in equal pay­ments accord­ing to the sched­ule. There’s a work sheet with the Form 1040-ES pack­age or when fil­ing your tax­es the per­son should be able to print you the amounts from the tax software.You can send a paper check along with the Form 1040-ES vouch­er. Alter­na­tive­ly, you can file elec­tron­i­cal­ly with a cred­it card with whom ever you did tax­es with or you can go on the irs web­site and sign with there direct pay option.  Here are a few ways to know what you are going to have to pay as well as the esti­mat­ed fil­ing sched­ule.


  • Use Form 1040-ES – You can cal­cu­late your quar­ter­ly esti­mat­ed tax pay­ment using Form 1040-ESDownload Adobe Reader to read this link content (the same form used to pay esti­mat­ed tax­es), which includes a work­sheet that helps you esti­mate how much you owe for the cur­rent year. Cor­po­ra­tions should use Form 1120-WDownload Adobe Reader to read this link content to cal­cu­late esti­mat­ed tax­es.
  • Refer to Last Year’s Return – If you have been in busi­ness for a while, you can refer to your pre­vi­ous year’s fed­er­al tax return. Include all the income and deduc­tions you expect to take on your cur­rent year’s tax return and refer to the total tax you paid so that your esti­mat­ed tax pay­ments are in the same range as last year’s tax­es (100–110 per­cent is the range to shoot for to avoid under­pay­ment prob­lems).
  • Make a Quar­ter­ly Cal­cu­la­tion – If you are a free­lancer or inde­pen­dent con­trac­tor and face fluc­tu­at­ing or cycli­cal income, you might pre­fer to cal­cu­late your esti­mat­ed tax­es on a quar­ter­ly basis.
Esti­mat­ed fil­ing sched­ule
Esti­mat­ed tax due For income received
April 15 Jan. 1 through March 31
June 15 April 1 through May 31
Sept. 15 June 1 through Aug. 31
Jan. 15 Sept. 1 through Dec. 31



The W-2 form reports an employee’s annu­al wages and the amount of tax­es with­held from his or her pay­check and is use to file your fed­er­al and state tax­es.


A W-4 is a form that indi­vid­u­als com­plete for with­hold­ing pur­pos­es, where a W-2 form is for employ­ers to actu­al­ly  fill out. The employ­er must pro­vide the employ­ee their W-2 form by a cer­tain date that is set by the IRS. A employ­er must legal­ly give out a w2 to any per­son who has worked for the com­pa­ny for any amount of mon­ey, does­nt mat­ter the amount. Also for those work­ing for any oth­er forms of com­pen­sa­tion.  The employ­er must send the employ­ee the W-2 Form on or before Jan­u­ary 31st each year so the employ­ee has ample time to file his or her tax­es before the dead­line, April 15. (depend­ing on irs)

W-2 is the most com­mon tax form, there are oth­ers that apply only to spe­cif­ic cir­cum­stances. Con­tract­ed employ­ees must fill out  a W-9 Form pri­or to work, and they are giv­en a 1099 Form by the com­pa­ny for which they pro­vid­ed ser­vice, but only if they com­plet­ed $400 worth of work or more. They are con­sid­ered con­trac­tors and have no tax­es tak­en out of the income they recieve through the year. Stu­dents receive a Form 1098 if they paid inter­est on col­lege tuition or a stu­dent loan that year.

The fields on a W-2 Form pro­vide  all types of income. There is a box that states the total amount of mon­ey the employ­ee made from that employ­er in the year, which is the same for fed­er­al and state. some of the oth­er field indi­cate the amount of tax­es that were with­held from the employee’s pay­checks, sep­a­rat­ed by fed­er­al income tax, social secu­ri­ty wages, social secu­ri­ty tax, and more. There are also fields that show how much mon­ey in tips the employ­ee report­ed for the year, which applies to any jobs that allow the employ­ee to col­lect tips. Like wait­ress or bar­tenders and such.

Some oth­ers things are the employ­ers EIN which is the EMPLOYER IDENTIFICATION NUMBER.

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