Have You Paid Enough for 2014?

The deadline for the third quarterly payment of 2014 estimated taxes is September 15. That’s a good date to do a quick review of the taxes you’ve paid so far for 2014, whether you pay in quarterly installments, through withholding, or both. If necessary, you can beef up your quarterly payment or adjust your income tax withholding for the remainder of the year. Be aware that withheld taxes are considered paid in equal amounts during the year, regardless of when the tax is withheld. An adjustment now to withholding or quarterly estimates can help prevent underpayment penalties for 2014.