Rens is self-employed. Based on last year, his projected state and federal taxes for this year will be approximately $16,800. Determine how much Rens should put aside each month in order to have enough to pay his estimated quarterly taxes.
Assuming Rens pays quarterly taxes, he would need to set aside $4,200 each quarter in order to have enough to pay his estimated taxes for the year.
To determine how much he should put away each month, he would need to divide $4,200 by 3 (since there are 3 months in each quarter): $4,200 / 3 = $1,400.
Therefore, Rens should put aside approximately $1,400 each month in order to have enough to pay his estimated quarterly taxes.