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It's tax day — and whether you're celebrating a finished return or still working through an extension, tax payments are on your mind. In this episode, we walk through a practical framework for planning your quarterly estimated tax payments so you're not scrambling, stressed, or surprised come tax time.

We cover the two ways ODs pay taxes through the year, IRS safe harbor targets to avoid underpayment penalties, and a simple system to automate the whole process so you stay ahead all year long.

What You'll Learn

The two ways ODs pay federal taxes through the year — payroll withholdings vs. quarterly estimated payments
Which payment method applies based on how you practice (W2, sole prop, S Corp)
The three IRS safe harbor targets that protect you from underpayment penalties
How to calculate your quarterly payment amount step by step
How to set up a dedicated tax savings account and automate deposits
Where quarterly tax payments fit in your practice's cash flow priority order
How to adjust your payments as income changes through the year
The importance of working proactively with your professionals

Key Takeaway

The biggest tax payment headaches come from not having a system. Pick your safe harbor target, calculate your quarterly amount, automate deposits into a dedicated tax account, and adjust as you go. It's not glamorous — but it's how you move from reactive and stressed to in control.

And keep in close contact with your financial and tax professionals to make sure you're making proactive decisions with tax payments and planning throughout the year!

Resources & Links

The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.