Question

If you are self employed what can you do to make sure you aren't surprised by how much you owe at the end of the year?

A pay estimated tax quarterly
B use payroll withholding
C fill out a W-4 form
D get audited bu the IRS

Answer 1

A pay estimated tax quarterly

Answer 2

The correct answer is letter A. You need to pay your estimated taxes quarterly, this way you are ensuring a non-problematic lifestyle or you do not owe the government any taxes for your recurring salary. At the end of the year, taxes that you have paid for can always be returned to you at certain percentages.