Four Options for Automating Quarterly Tax Savings and Payments
February 5, 2019
So long, but not farewell. We’ve made the difficult decision to retire our quarterly tax savings and payments service, and focus on solving for the larger freelance finance problem: How do you live today and save for tomorrow with variable income?
That said, we would never leave our beloved soloists in the lurch. We’ll continue to run this site as a resource and support hub for the self-employed community. And for those of you who need another way to manage planning and paying your quarterly taxes, we’ve got some options for you.
Goal-based savings apps
We recently wrote about why saving for taxes is such a struggle for so many people. Automation makes that hard work easier. Consider trying a goal-based savings app that will set aside money for taxes throughout the quarter while you focus on your most valuable work. Here’s a quick comparison chart for you.
|Qapital||Within Qapital, you can set up “taxes” as a goal and use rules to start setting aside money towards that goal.|
|Digit||Digit works by tracking your spending and letting you determine how much money you can set aside for your goals.|
|SmartyPig||SmartyPig lets you set up goals and rules including recurring contributions.|
|Fidelity Goal Booster℠||Fidelity Goal Booster℠ is a hybrid saving and investing platform designed to help you achieve short-term savings goals.|
This is a non-exhaustive sample list of popular apps we are aware of. We don’t have a relationship with any of these services or endorse them, with the exception of Fidelity Goal Booster—our sibling startup that, like bSolo, came out of Fidelity Labs.
Automatic bank transfers
Current bSolo subscribers may consider looking into what their banks already offer, such as automatic recurring bank transfers between checking accounts and savings accounts. For best results, it may be worth creating a new savings account just for your tax funds. Here’s how that works for some of bSolo’s supported banks.
|Ally||You can automatically save for taxes by setting up a recurring transfer from your checking account into your savings account.|
|Bank of America||Bank of America supports autosaving via a recurring transfer from checking to savings. And, they’ve got a “Keep the Change” program that sweeps change from your checking account purchases into your savings account.|
|PNC||PNC supports autosaving from your checking account into your saving account through a recurring transfer. PNC’s savings accounts can also be used for overdraft protection.|
Autodraft tax payments (IRS Direct Pay)
Unfortunately, we won’t be able help to you with your first quarter payment on April 15 this year. But you can pay your taxes online with IRS Direct Pay, directly from your checking or savings account, at no cost. You can schedule payments up to 30 days in advance, and you can also make same-day payments. More details here.
We’re so grateful for the journey we’ve had with you and we’ve learned so much. During this transition period, stay tuned for more resources from us. For those of you who are tackling taxes for the first time as a solopreneur, refer to these: 1) Quarterly Tax Checklist, 2) Freelance Tax Forms Library, 3) The Beginner’s Self-Employment Tax Guide.