asquale is self-employed. Based on last year, his projected state and federal taxes for this year will be approximately $12,600. Determine how much Pasquale should put aside each month in order to have enough to pay his estimated quarterly taxes.
To determine how much Pasquale should put aside each month for his estimated quarterly taxes, we first need to calculate his total tax liability for the year and then divide that amount by 12 to get a monthly savings goal.
If Pasquale's total estimated state and federal taxes for the year are $12,600, he should put aside $12,600 / 12 months = $1,050 per month to cover his estimated quarterly taxes.
By setting aside $1,050 each month, Pasquale can ensure that he has enough funds to make his estimated quarterly tax payments throughout the year.