Track automatically files and pays your quarterly estimated payments to the IRS.
Which taxes does Track pay quarterly estimates?
Track files and submits quarterly estimated payments to the IRS for 1099 income, which includes:
- Federal Income Tax
- Self-Employment Tax (Social Security and Medicare)
How exactly does the automatic quarterly filing work?
At the end of a tax quarter, Track automatically sends the money you’ve withhold for taxes to the IRS for Federal Income and Self-employment taxes.
Prior to the end of the quarter, Track will send you an email summarizing the quarterly estimate payments that will be submitted on your behalf. This will give you an opportunity to withhold for any outstanding tax liability, helping you avoid penalties. You also have the option to cancel or update a tax payment by contacting us directly.
What amount is used for payment of the quarterly estimate?
The amount of the payment will be the lesser of your outstanding federal tax liability, or current tax withholding balance.
What proof do I get that the quarterly payment was processed?
You will receive a receipt via email. You can also download a filled out form 1040ES.
What happens to unused funds in my Tax Withholdings?
All remaining funds for a tax year will be returned to you on Feb 1st of the following tax year (i.e. for the 2017 tax year, remaining funds will be returned on Feb 1st, 2018. This includes the amounts that are withheld for your state income tax.
What about end of year tax filing?
Track does not provide end of year tax filing - however we have partnered with Credit Karma to provide free annual filing! If your tax situation is more complicated, we can also refer you to a CPA in your area.
I missed a previous quarterly payment... can Track handle that for me?
Track does not submit quarterly payments for previous quarters, nor do we submit quarterly payments after the stated deadline. We do, however, let you “catch up” and pay in subsequent quarter, helping you avoid penalties.