Dear Followers,

This is the month of St. Patrick’s Day and Spring.  I remember after my late husband had died in the previous Summer Spring brought me new life and hope.  I truly felt like a butterfly emerging from a very dark time of year and life’s event.  May the brighter light of Spring bring hope to your heart.

Sending love and hugs,

Carolyn

This Month’s Financial Tip

Quarterly tax payments:  (Yes, I am still talking about taxes because they generate so many client questions and it is that time of year).  

Quarterly tax payments are estimated tax payments you make to the IRS four times a year instead of paying all your taxes at once in April. 

Please reach out if you have questions about quarterly taxes. ^{[email protected] or 877.328.4037 ×700}

Understanding Quarterly Estimated Taxes

A client recently asked about quarterly estimated tax payments after her tax preparer recommended them. Below are some general considerations that may help clarify how these payments work.

What are quarterly estimated tax payments?
Quarterly estimated tax payments are periodic payments made to the IRS during the year when sufficient taxes are not withheld from income. These payments are commonly required for individuals with income sources such as self-employment, rental income, investment income, or other earnings without withholding. Estimated payments are typically based on prior-year tax liability and current-year income expectations.

What happens if they are not paid?
If sufficient taxes are not paid throughout the year—either through withholding or estimated payments—the IRS may assess underpayment penalties and interest. These amounts vary depending on the size of the underpayment and the timing of payments.

Are there ways to avoid making quarterly payments?
In some situations, increasing withholding from other income sources—such as wages, pensions, Social Security, or retirement distributions—may help cover total tax liability and reduce or eliminate the need for estimated payments. A qualified tax professional can assist in determining appropriate withholding levels.

How much needs to be paid to avoid penalties?
The IRS generally provides “safe harbor” guidelines. Individuals may avoid underpayment penalties if they pay at least:

• 90% of their current year tax liability, or

• 100% of their prior year tax liability (110% for higher-income taxpayers)

Illustrative Example (Hypothetical):
An individual who underpays taxes by $4,000 and delays payment for several months may incur penalties and interest. For example, at an annualized rate of approximately 7–8%, the total cost could be around $200, though actual amounts vary based on IRS rates and timing.

Important Considerations
Paying too little during the year may result in penalties, while significantly overpaying may reduce available cash flow during the year. Managing tax payments appropriately can help maintain balance.

Reach out to Carolyn if you have questions about your Taxes.

Please call me 941-841-6564 or email me at [email protected]

More Insight on Quarterly Taxes

Below is an article with some great insight on the ins and outs of paying quarterly taxes.

Books Worth Reading

My latest fun book is on Sourdough Bread and how to start your own starter.  Click below to see more on Amazon.

 Daily Sourdough by Lisa Bass

This Month’s Recipe

Here is a delicious recipe that I made with modifications to help celebrate St. Patrick’s Day. It is delicious with a cup of tea. 

Are you ready to munch into something tasty and easy as we move into the Spring season?  (You can substitute sugar with monk fruit sugar if you want to reduce sugar impact.) 

Irish Apple Cake & Streusel

Ingredients Irish Apple Cake

1 cup whole wheat flour
1 cup white flour ½ tsp nutmeg
¾ cup sugar 2 large eggs, room temperature
2 tsp vanilla extract ½ tsp salt
2 tsp baking powder ½ tsp baking soda ½ tsp cinnamon 1 cup whole milk plain yogurt, room temperature 1 pound Granny Smith apples, unpeeled, chopped into ½ pieces ½ cup unsalted butter 1 tsp lemon juice
 

Ingredients Streusel

_1/3 cup light brown sugar 3 Tblsp unsalted butter, melted _1/3 cup old fashioned oats ¼ tsp cinnamon
¼ cup all purpose flour ½ cup walnuts chopped (optional)

Directions

1. Preheat oven to 350F. Coat a 9 inch springform pan with cooking spray.  Whisk 1 cup whole-wheat flour, 1 cup all purpose flour, 2 tsps baking powder, ½ tsp each baking soda, salt, and cinnamon and ¼ tsp nutmeg together in a medium bowl. 

2. In large bowl, combine softened butter and ¾ cup sugar; beat with an electric mixer on medium speed until fluffy, about 1 minute. Add 1 cup yogurt, 2 eggs, 2 tsps vanilla and 1 tsp lemon juice; beat just until combined.  Add the flour mixture and beat until just blended.  Fold in chopped apples.  Transfer the batter to the prepared pan and smooth the top. 

3. Make streusel:  Combine melted butter, 1/3 cup brown sugar, 1/3 cup oats, ¼ cup flour and ¼ tsp cinnamon in a small bowl: stir until no dry spots remain.  Crumble evenly over the batter in the pan. 

4. Bake until a toothpick inserted in the center comes out clean with only a few crumbs and the top is golden brown, about 45 minutes.  Transfer to a wire rack and cool completely in the pan, about 1 hour. 

   Serve with ice cream or whipped cream.  Enjoy!!!

Important Disclosures

This material is for informational purposes only and is not intended as tax or legal advice. Accurate Advisory Group, LLC does not provide tax preparation or legal services. Individuals should consult with a qualified tax professional regarding their specific situation before making any tax-related decisions.

Examples provided are hypothetical and for illustrative purposes only. They do not reflect actual client experiences or guarantee future outcomes. Tax rules and IRS penalty rates are subject to change and may vary based on individual circumstances.