The third quarter includes the months of June, July and August. The fourth quarter estimated taxes will include the months of September, October, November and December. (Yes, the quarters of the year do not all cover three months.)
Most child care providers do not need to file estimated taxes (IRS Form 1040 ES Estimated Tax for Individuals). This is because their spouse usually has enough withheld in taxes to cover them.
You are most likely need to file estimated taxes if you are single or you have a spouse who is unemployed or self-employed.
If you are not sure if you or your spouse has paid in enough taxes for the months of June, July and August, you should make a tax payment with this form. You goal is to have paid in at least 90% of the taxes you owe for this quarter to avoid paying a penalty. If you pay in too much you will get a refund.
How do you know how much you will owe in taxes? If you were in business in 2011 use last year as a guide. If this is your first year, use 20% of your gross income (parents fees plus Food Program income) for June, July and August as a conservative guess of how much you will owe.
Lastly, check your records to see if you will owe any state income taxes. If so, make a state estimated tax payment by September 17 as well.
The deadline for the fourth quarter is January 15, 2013.
Note: Normally estimated tax payments are due on the 15th of the month, but since September 15th falls on a weekend, the date is moved up to the next Monday, the 17th.
Please feel free to contact me if you have further questions about estimated taxes - firstname.lastname@example.org.
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For more details on filing estimated taxes see my 2011 Family Child Care Tax Workbook and Organizer.