"A $0 estimate? Something must be wrong here..."
No need to worry! A $0 estimate is not cause for concern and does not mean there was an error with your estimated tax calculation. There are two main reasons you may receive a $0 estimate from our accounting team:
- You are not expected to owe more than $1,000 in taxes this year, in which case the IRS does not require you to submit quarterly estimated tax payments.
- Based on what you have paid in prior quarters of the current tax year, you have already paid enough to cover your estimated tax for the year. We have calculated your estimates based on your tax liability for the prior year, with a little bit of cushion to take into account your business income for the current year.
It is entirely up to you if you want to pay more or less than the quarterly estimate Heard has calculated for you. If you feel like you may have some additional income not reflected in Heard and/or you want to pay a little extra to cover your bases, feel free to round up our estimate when you pay! If you feel that the estimate is higher than what you anticipated owing in taxes this year, you may want to lower your estimate slightly. This is perfectly reasonable and is not cause for concern.