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Every freelancer I meet seems to forget about quarterly taxes until April

I swear, every time I chat with another freelancer at a co-working spot or online, they mention they just set aside 30% at the end of the year and hope for the best. Last week I talked to a graphic designer in Austin who owed $4,200 and had no idea why. I've been doing this 8 years now, and I learned the hard way after getting hit with a $600 penalty my second year. You gotta pay those estimated taxes every 3 months or the IRS will nail you. Anyone else sick of hearing people freak out about this every spring?
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3 Comments
the_nina
the_nina28d ago
My CPA had me paying $50 a week into a separate account and it actually worked.
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martin.paige
Used to roll my eyes at that strategy but honestly seeing it work for a few people changed my mind. The separate account thing really does make a difference psychologically I guess. Your mileage may vary but it's worth a shot.
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the_jamie
the_jamie28d ago
Just set up automatic quarterly payments and save yourself the headache.
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