For Self-Employed Entrepreneurs, its sometimes difficult budgeting taxable income in an economy whose prices seem to go up for everything. Careful planning and thoughtful foresight can help make next year's Tax Season is less burdensome.

When you receive a check for $1,000 from a customer/client, make sure you remember that only ~75% of the net income is truly yours. Make a habit of putting around 25% of all of your net funds aside. This will ensure that you have ample funds to pay April 15th's tax liability. Even if you end up putting too much money aside, you'll then have an immediate "tax refund" to use for home improvements or that much-needed vacation.

Its also worth noting that the IRS does not consider your 2015 taxes due on April 15th, 2016. The IRS requires estimated taxes due at the end of the quarter that the actual funds were earned within. Thus, a check for $1,000 on July 12th has 25% (or your 2015 effective tax rate was) due at the end of September.

Making sure your taxes are paid throughout the year is a great way to save on penalties and interest and make sure your taxes are truly minimized. Look to KohlerFinancial.com for more helpful tips to minimize coming years' tax crunch.

DISCLAIMER
The information listed above is to be used subjectively. This information is not to be used to supplement any IRS statutes and holds no legal basis for tax avoidance.