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BlissPoint Access

Tax Planner

No surprise tax bill in April

See what you’ll likely owe this year, the payment that keeps you clear of the IRS underpayment penalty, and exactly what to send each quarter.

Income minus expenses for the whole year, from your books.

For the whole year.

Interest, dividends, rent, investment gains.

Contributions that lower income.

Only if more than the standard deduction; otherwise leave blank.

Form 1040, line 24. This is the key to avoiding a penalty.

Form 1040, line 11.

Fill in what you know; your plan appears here. Nothing is saved.

Let Aiva keep your taxes on track

Inside BlissPoint, Aiva reads your invoices and books, updates this plan as money comes in, reminds you before each due date and points out write-offs you’re missing.

Start freeSee 200+ write-offs

Questions

How do I avoid an IRS underpayment penalty?

Pay, through withholding and quarterly estimated payments, at least the smaller of 90% of this year’s tax or 100% of last year’s tax (110% if last year’s adjusted gross income was over $150,000). That is the safe harbor in IRC section 6654(d).

When are quarterly estimated taxes due?

April 15, June 15, September 15 and January 15 of the next year (moved to the next business day if one falls on a weekend or holiday).

How much should a freelancer set aside for taxes?

It depends on income and state. Self-employment tax alone is 15.3% on most of your profit, plus income tax. The planner works out a percentage of each payment you receive to set aside.

How do I pay estimated taxes?

IRS Direct Pay or EFTPS at irs.gov/payments, or with a Form 1040-ES voucher. If you also have a job, raising your W-4 withholding works too and counts as paid evenly through the year.