Latest news with #taxpayments
Yahoo
10 hours ago
- Business
- Yahoo
'Record-Shattering': Warren Buffett's Berkshire Hathaway Has Now Paid $101 Billion in Cumulative Federal Income Tax
When Warren Buffett assumed control of Berkshire Hathaway (BRK.B) (BRK.A) in 1965, the company was a struggling textile manufacturer that had not paid federal income tax for years — a fact Buffett described as 'an embarrassment' for such a venerable firm. Fast forward six decades, and Berkshire Hathaway has become not only a global conglomerate but also America's single largest corporate taxpayer. In his 2024 annual letter, Buffett revealed that the company's cumulative federal income tax payments have now surpassed $101 billion. This staggering sum is more than a financial milestone; it represents a direct infusion into the nation's ability to fund essential services. To put $101 billion in perspective: Is Tesla a Buy or Sell as TSLA Stock Zooms on Austin Robotaxi Launch? These 3 Stocks Have Been Hot in 2025. Should You Sell Them Now Before It's Too Late? The 7 Signs Your Stock Is A Buyout Target Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Military Budget: The U.S. Department of Defense's annual budget for 2024 was approximately $850 billion. Berkshire's lifetime tax payments could fund more than 11% of the entire U.S. military for a year, or fund the Marines for two full years. Healthcare and Education: $101 billion could finance the federal government's entire Medicaid program for several months, or fund the Department of Education's discretionary budget for more than an entire year. State Revenue: For comparison, many U.S. states have annual budgets well below $101 billion. Berkshire's tax contributions over the years would eclipse the yearly general fund budgets of states like Pennsylvania, Illinois, or Ohio. Texas, one of the largest economies in the world, has $250 billion in yearly tax revenue. In 2024 alone, Berkshire paid $26.8 billion in federal income taxes, accounting for roughly 5% of all corporate income tax collected in the U.S. — a figure surpassing even the largest technology firms with trillion-dollar market capitalizations. This historic payment demonstrates the outsized role Berkshire plays not just in the corporate world, but in supporting the nation's fiscal health. Buffett called the sum a 'record-shattering payment.' Buffett said of his company's tax bill last year that 'if Berkshire had sent the Treasury a $1 million check every 20 minutes throughout all of 2024 – visualize 366 days and nights because 2024 was a leap year – we still would have owed the federal government a significant sum at yearend.' This showcases the staggering sum of money Berkshire paid out to the U.S. government. Buffett has repeatedly urged policymakers to use these funds wisely, advocating for investments that 'take care of the many who, through no fault of their own, get the short straws in life.' He has also warned that maintaining a stable currency and financial system requires 'wisdom and vigilance' from government leaders. Berkshire's tax legacy is rooted in its unique approach: the company has paid only one cash dividend since 1965, instead reinvesting profits to fuel growth and, in turn, generate ever-larger tax payments. This model, endorsed by shareholders for decades, has allowed Berkshire to transform from a tax-avoiding relic into a pillar of America's fiscal foundation. As debates continue over corporate taxation and government spending, Berkshire Hathaway's $101 billion contribution stands as a powerful example of how sustained business success can translate into tangible benefits for society at large. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
10-06-2025
- Business
- Yahoo
Self-employed? Your next estimated tax payment is due soon
If you're self-employed or earn certain types of income, there's a good chance you'll need to pay estimated taxes — and your next payment is due soon. There are four due dates for estimated tax payments: The first one is April 15, the next one one is June 16, followed by Sept. 15 and then Jan. 15 the following year. Usually the due date is the 15th of the month, but June 15 falls on a Sunday this year, so the due date is June 16. For context, the U.S. tax system is a pay-as-you-go model: You're meant to pay taxes as you receive income throughout the year. If you're an employee, taxes are withheld from every paycheck and sent to the IRS by your employer. But self-employed people have to take care of their own tax payments. If you don't make estimated payments and instead wait until the tax-filing deadline to pay your taxes, you may face late-payment penalties and interest. Estimated taxes are owed four times a year on any taxable income you earned during that period that wasn't subject to federal withholding. That is, you received income and no money was withheld to pay your tax bill. If your sole income is a salary from an employer, you generally don't need to worry about estimated taxes, because your employer withholds money from your paycheck to pay the IRS on your behalf (just make sure you have enough withheld from your paycheck). Learn more: W-4 form: How to fill it out in 2025 But anyone who receives income from which taxes haven't been withheld needs to understand how and when to pay estimated taxes. Types of income usually not subject to tax withholding, and thus liable to require estimated tax payments throughout the year, include: Self-employment earnings Gig or side hustle earnings Interest Dividends Capital gains Prizes Rents Unemployment compensation Social Security benefits in some cases You'll need to make estimated tax payments if you expect to owe more than $1,000 in taxes for the year, after any withholding you paid or refundable credits you're eligible for are subtracted out. (Note that special rules apply for farmers and fishermen.) The IRS wants Americans to pay taxes as they earn money. Normally, penalties and interest apply for underpayments and late payments. However, the IRS offers safe harbor guidelines to help you avoid those penalties, even if you're not sure exactly how much income you'll have for the year. For example, let's say you earned self-employment income in 2025. As long as you make estimated payments (either in one lump sum by the first deadline below, or spread out over four or more payments by the deadlines below) that add up to 90 percent of your total 2025 tax bill, you won't owe penalties or interest. There's another safe harbor, one that's especially useful if you're not sure how much you're likely to owe in taxes for 2025: You can pay 100 percent of your 2024 tax bill (paid in a lump sum by the first deadline below, or spread out over four or more payments by the deadlines below) to protect yourself from owing penalties and interest. That safe-harbor percentage rises to 110 percent if your 2024 income was $150,000 or more, whether single or married filing jointly (or $75,000 if married filing separately in 2025). Learn more: IRS underpayment penalty: What it is and and how to avoid it The 2025 deadlines for paying estimated taxes are as follows: Estimated tax payment deadlines for 2025 For income received in this time period April 15, 2025 Jan. 1 through March 31, 2025 June 16, 2025 April 1 through May 31, 2025 Sept. 15, 2025 June 1 through Aug. 31, 2025 Jan. 15, 2026 Sept. 1 through Dec. 31, 2025 The fourth deadline is always in January of the following year. Normally, the estimated tax deadlines fall on the 15th of the month, but when this date falls on a weekend or federal holiday, the filing deadline is pushed to the following business day. Need an advisor? Need expert guidance when it comes to managing your money? Bankrate's AdvisorMatch can connect you to a CFP® professional to help you achieve your financial goals. Form 1040-ES offers instructions for figuring out your estimated taxes and provides vouchers to send along with your estimated tax amounts if you pay by check or money order. Choosing the '100 percent of the previous year's tax bill' safe harbor option is simple. Simply look at your tax return for the previous year, and then make estimated payments that add up to the total tax owed for that year. There is a different safe harbor for high earners, defined by the IRS as those making $150,000 or more if single or married filing jointly (or $75,000 if married filing separately in 2025): They must pay 110 percent of the previous year's tax liability to meet the safe harbor. For example, if your tax bill last year was $30,000, this year you would pay $33,000 (10 percent more) in estimated and/or withholding taxes to avoid underpayment penalties. If you choose the '90 percent of this year's tax bill' safe harbor, then, depending on your situation, you might use your previous year's tax return as a source for calculating how much you owe. Check the income claimed and deductions taken on the previous year's federal tax return and assess whether they will be comparable in the current year. The IRS promotes the idea of paying estimated taxes in four equal payments over the year, but some businesses are seasonal. For example, a landscaping business makes most of its money during the warmer months of the year. It's wise to pay the tax as you get income. In this situation, you'd follow the annualized income installment method that enables you to pay when you're flush with cash. Instructions are in IRS Publication 505. Once you determine the amount to pay, the IRS will accept your money in several ways, including: Direct payment from your checking or savings account. The IRS2Go mobile app (IRS2Go is available in the App Store or on Google Play.) Payment with debit or credit card. Use of the Electronic Federal Tax Payment System. Same-day wire through your bank. Cash at a participating retail establishment. Instructions for making payments can be found at If you pay online, which you can do any time of the year, be sure to select the tax year and tax type or form associated with your payment. If you pay by check or money order, send the payment along with a Form 1040-ES voucher to the address specified for your state or territory on that form. Make the check out to the United States Treasury, and in the notes section in the lower left corner, specify the tax year and 'estimated taxes.' If you live in an area that has experienced a natural disaster, keep in mind that the IRS may have postponed the due dates for estimated tax payments. A list of such situations can be found on the IRS website. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
