Gus is the self-employed owner at four paws pet supply. His estimated annual earnings are $43,280.00 and he expects to pay 18% of this amount in income tax. What will be his quarterly estimated tax payment for the second quarter
To calculate Gus's quarterly estimated tax payment for the second quarter, we first need to determine his estimated income tax for the entire year.
Estimated Income Tax = Annual Earnings * Tax Rate
= $43,280.00 * 18%
= $7,790.40
Since Gus needs to make quarterly estimated tax payments, he will divide his estimated tax by four.
Quarterly Estimated Tax Payment = Estimated Income Tax / Number of Quarters
= $7,790.40 / 4
= $1,947.60
Therefore, Gus's quarterly estimated tax payment for the second quarter will be $1,947.60.
To calculate Gus's quarterly estimated tax payment for the second quarter, we need to first determine his estimated annual income tax.
Gus's estimated annual income tax can be found by multiplying his estimated annual earnings by the tax rate.
Tax amount = Annual earnings * Tax rate
Tax amount = $43,280 * 0.18
Next, we can divide the annual estimated tax by 4 to find the quarterly estimated tax payment.
Quarterly estimated tax payment = Annual estimated tax / 4
Let's calculate the quarterly estimated tax payment for Gus:
Tax amount = $43,280 * 0.18 = $7,790.40
Quarterly estimated tax payment = $7,790.40 / 4
After dividing by 4, we find that Gus's quarterly estimated tax payment for the second quarter is $1,947.60.