Are Quarterly Payments Getting You Down?
- posted by KLR
I have noticed that people generally get excited when they talk about paying taxes, but they get really excited when they talk about paying their property taxes. How come? The upsetting factor seems to be making the payments. I’m not so sure landowners don’t feel they are getting their money’s worth -- it’s more about the actual payments. Of course that makes me think - wow - I wonder what would happen if all taxes had to be paid the same way as property taxes; you know - quarterly.
It would mean that an unmarried person who makes $25,000 a year would need to write a quarterly check for $502.50 to the US Treasury, a check for $150.75 to the State, and a check for $478.13 to the Social Security Administration. That is $1,131.38 in tax payments every three months. That is surely more than the property tax check for this individual.
What about a married couple making $70,000 a year? That would mean quarterly checks to the US Treasury for $1,754, the State for $505.25, and the Social Security Administration for $1,338.75. Each quarter would see the couple writing checks for $3,598 and they would do this four times a year (or put another way, $1,199.33 a month)!
How about sales tax? The $25,000 single person will spend an average of $5,200 a year on consumables for an additional check to the State for $364. The married couple will spend an average of $11,700 for an additional check to the State for $819.
This does seem a lot less pleasant than having the income and social security taxes withheld from our paychecks. And paying the sales tax annually is not nearly as nice as paying a little bit with every purchase. With that in mind, we could be thankful that there is a system to make paying our income, social security, and sales taxes so convenient. Maybe someone could find a way for property taxes to be withheld from our paychecks - it would be a lot easier than making those quarterly payments.
By. Norman LeBlanc, CPA
Tax Services Group
It would mean that an unmarried person who makes $25,000 a year would need to write a quarterly check for $502.50 to the US Treasury, a check for $150.75 to the State, and a check for $478.13 to the Social Security Administration. That is $1,131.38 in tax payments every three months. That is surely more than the property tax check for this individual.
What about a married couple making $70,000 a year? That would mean quarterly checks to the US Treasury for $1,754, the State for $505.25, and the Social Security Administration for $1,338.75. Each quarter would see the couple writing checks for $3,598 and they would do this four times a year (or put another way, $1,199.33 a month)!
How about sales tax? The $25,000 single person will spend an average of $5,200 a year on consumables for an additional check to the State for $364. The married couple will spend an average of $11,700 for an additional check to the State for $819.
This does seem a lot less pleasant than having the income and social security taxes withheld from our paychecks. And paying the sales tax annually is not nearly as nice as paying a little bit with every purchase. With that in mind, we could be thankful that there is a system to make paying our income, social security, and sales taxes so convenient. Maybe someone could find a way for property taxes to be withheld from our paychecks - it would be a lot easier than making those quarterly payments.
By. Norman LeBlanc, CPA
Tax Services Group
Labels: KLR, LeBlanc, Quarterly Property Taxes
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KLR is one of New England's premier accounting and business consulting firms. With 160 team members and offices in Providence, Boston, Waltham and Newport, KLR provides a wide range of services to both individuals and businesses.
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