Accurate Form 1040-ES calculations based on real-time profit. We help you avoid underpayment penalties, manage cash flow, and leverage Safe Harbor rules to protect your earnings.
The US tax system operates on a "pay-as-you-go" basis, meaning taxes are due as income is earned, not just when you file a return. Since business owners and independent contractors do not have taxes withheld from paychecks, they must make Quarterly Estimated Tax Payments (Form 1040-ES) four times a year. Failure to pay enough tax throughout the year can result in significant Underpayment Penalties, even if you pay the full balance by the filing deadline.
We analyze your year-to-date profit every quarter to calculate exactly what you owe. This precise forecasting prevents you from overpaying—effectively loaning the government money interest-free—or underpaying and triggering penalties. We provide you with clear payment vouchers and instructions on how to pay online, so you can execute the payment in minutes.
The IRS offers "Safe Harbor" protection if you pay a specific percentage of your prior year's tax liability. We calculate this exact threshold to ensure you are immune to underpayment penalties, regardless of how much revenue you generate this year. This strategy is critical for high-growth businesses, as it caps your required prepayments and prevents spiraling tax liabilities during your growth phase.
We advise on exactly how much revenue to set aside in a separate "Tax Savings Account" every month so you never accidentally spend your tax bill. Before the year ends, we review potential strategic moves—such as maximizing retirement contributions (SEP IRA/Solo 401k) or purchasing equipment—to lower your final liability, giving you total clarity on your "Net Profit" versus your actual "Spendable Cash."
Tax surprises are a failure of planning. Waiting until year-end to talk to your accountant is a costly mistake.
If you only look at your taxes once a year, you lose the opportunity to act. By the time you file in April, the tax year is closed, and it is too late to implement strategies that could have saved you thousands. At JK Tax Service, we turn tax compliance into a year-round conversation, ensuring that your tax bill never catches you off guard.
Get StartedThe standard due dates are April 15th, June 15th, September 15th, and January 15th of the following year. If these dates fall on a weekend or holiday, the deadline is pushed to the next business day.
Generally, no. If your business is operating at a net loss for the quarter, you typically do not need to make an estimated payment for that period. However, we still recommend running a calculation to ensure no other income sources trigger a liability.
The IRS charges an underpayment penalty based on current interest rates (which can fluctuate). This penalty is applied to the amount you should have paid for each quarter, essentially charging you interest for late payment.
For businesses with seasonal or irregular income, we use the Annualized Income Installment Method. This allows you to pay taxes based on what you actually earned in that specific quarter, rather than paying four equal amounts, preserving your cash flow during slow months.