Remember cute little Stephanie Tanner from the Full House TV series, played by Jodie Sweetin? The star has had her ups and downs over the years, but she has cleared her debt with the IRS and has a clean slate for 2014.

TMZ had reported that 31-year-old Sweetin failed to pay back taxes, with her IRS case starting in or about 2009. However, she has repaid her $53,626.29 debt owed to Uncle Sam.

Paying off IRS debt marks a positive change for Sweetin. Once troubled with drug addiction, Sweetin has been on a good path and has recently filed for legal separation from her husband, Morty Coyle.

Celebrities Are Not The Only Ones

It is not uncommon to find celebrities who owe back taxes to the IRS, take Willie Nelson and Wesley Snipes as an example. Since most celebrities and artists are paid in royalties, they have to set aside money for the upcoming tax season and pay their estimated taxes.

amcq5rw4 150x150 Learn From “Full House” Actress — Pay Your Estimated TaxesSelf-Employment Tax

Like small business owners, sole proprietors, contractors, freelancers and anyone who is self-employed for that matter, celebrities are supposed to pay estimated taxes on a quarterly basis throughout the year. The self-employed have to pay a self-employment tax on the net income (income earned after deducting business expenses) earned from their business. The self-employment tax is 15.3%, 12.4% for Social Security and 2.9% for Medicare. If earnings exceed a certain amount, the taxpayer is not required to pay the Social Security portion of the tax. Additionally, if the self-employed can lower their income taxes by deducting half of the self-employment tax from their adjusted gross income.

People Who Pay Estimated Taxes

Sole Proprietorship, Partnership and S-Corporation shareholders that anticipate paying more than $1,000 a year in federal taxes are accountable for estimated taxes. Corporations that think they will pay more than $500 a year are also required to pay estimated taxes.

Estimated Tax Deadline

There are four (4) IRS installment periods for estimated taxes. For income earned from January through March, estimated taxes are due on or before April 15. For income earned from April through May, estimated taxes are due on or before June 15. For income earned from June through August, estimated taxes are due on or before September 15. Finally, for income earned from September through December, estimated taxes are due on or before January 15.

Avoid Tax Fines and Pay In Full

The IRS will fine taxpayers who underpay estimated taxes. Taxpayers must watch out for underpayment penalties of up to 8 percent if they did not pay enough estimated taxes during a quarterly installment period, or forgot about the installment period entirely.

Questions About Back Taxes and Estimated Taxes

If you have further questions about paying estimated taxes, or if you owe back taxes to the IRS, it is crucial to seek the help of a professional. Companies like U.S. Tax Shield have tax resolution specialists that can help you get out of IRS debt.

US Tax Shield tax professionals provide clients with excellent service. Our experienced tax lawyers and enrolled agents have years of tax resolution success helping clients, individuals, sole proprietors, partnerships, and corporations, and business owners solve their IRS and state tax liability problems.

Remember cute little Stephanie Tanner from the Full House TV series, played by Jodie Sweetin? The star has had her ups and downs over the years, but she has cleared her debt with the IRS and has a clean slate for 2014.

TMZ had reported that 31-year-old Sweetin failed to pay back taxes, with her IRS case starting in or about 2009. However, she has repaid her $53,626.29 debt owed to Uncle Sam.

Paying off IRS debt marks a positive change for Sweetin. Once troubled with drug addiction, Sweetin has been on a good path and has recently filed for legal separation from her husband, Morty Coyle.

Celebrities Are Not The Only Ones

It is not uncommon to find celebrities who owe back taxes to the IRS, take Willie Nelson and Wesley Snipes as an example. Since most celebrities and artists are paid in royalties, they have to set aside money for the upcoming tax season and pay their estimated taxes.

amcq5rw4 150x150 Learn From “Full House” Actress — Pay Your Estimated TaxesSelf-Employment Tax

Like small business owners, sole proprietors, contractors, freelancers and anyone who is self-employed for that matter, celebrities are supposed to pay estimated taxes on a quarterly basis throughout the year. The self-employed have to pay a self-employment tax on the net income (income earned after deducting business expenses) earned from their business. The self-employment tax is 15.3%, 12.4% for Social Security and 2.9% for Medicare. If earnings exceed a certain amount, the taxpayer is not required to pay the Social Security portion of the tax. Additionally, if the self-employed can lower their income taxes by deducting half of the self-employment tax from their adjusted gross income.

People Who Pay Estimated Taxes

Sole Proprietorship, Partnership and S-Corporation shareholders that anticipate paying more than $1,000 a year in federal taxes are accountable for estimated taxes. Corporations that think they will pay more than $500 a year are also required to pay estimated taxes.

Estimated Tax Deadline

There are four (4) IRS installment periods for estimated taxes. For income earned from January through March, estimated taxes are due on or before April 15. For income earned from April through May, estimated taxes are due on or before June 15. For income earned from June through August, estimated taxes are due on or before September 15. Finally, for income earned from September through December, estimated taxes are due on or before January 15.

Avoid Tax Fines and Pay In Full

The IRS will fine taxpayers who underpay estimated taxes. Taxpayers must watch out for underpayment penalties of up to 8 percent if they did not pay enough estimated taxes during a quarterly installment period, or forgot about the installment period entirely.

Questions About Back Taxes and Estimated Taxes

If you have further questions about paying estimated taxes, or if you owe back taxes to the IRS, it is crucial to seek the help of a professional. Companies like U.S. Tax Shield have tax resolution specialists that can help you get out of IRS debt.

US Tax Shield tax professionals provide clients with excellent service. Our experienced tax lawyers and enrolled agents have years of tax resolution success helping clients, individuals, sole proprietors, partnerships, and corporations, and business owners solve their IRS and state tax liability problems.