Automate Quarterly Tax Payments With This App
For many aspiring freelancers (and some seasoned vets), quarterly taxes are a nightmare. Either you don’t know you have to pay them and you’re caught off guard, or you’re holding too little.
Enter: the Track.Tax app, which promises to automatically calculate the amount of your tax debt every time you receive 1099 and put it into a savings account with Evolve Bank so that you pay quarterly taxes on time and in full (your withholdings don’t earn interest). Basically, you link your bank account to the app, and it will look for freelance income in your deposits.
You can also tie your expenses to be deducted for you, and with your consent, he will file your taxes with the IRS and the state government. You will not be able to return the money if it is delayed unless you receive a refund.
You can try the app for free for 30 days, after which it will cost $ 10 per month. It includes calculations and deductions, and free annual state and federal tax returns.
When tracking freelance earnings, the app is about 80% accurate at first, but it learns over time, according to Next Avenue . Therefore, you should double-check it to work, especially in the first few months of use. You will need to manually correct any inaccuracies.
According to the website , the app does not yet account for:
- Investment gain / loss
- Multiple states
- Social Security Income
- Balance for previous tax years
- Previous IRS or state payments
So again, you’ll want to double check everything, and Track lets you upload your info, for example if you want to show your CPC.
It’s not ideal yet, but for freelancers who typically underestimate their quarterly taxes or are just starting out as a freelancer, this can be a valuable resource.
For more information on quarterly taxes, check out these resources .