American Massage Therapy Association (AMTA) Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the American Massage Therapy Association (AMTA) Test with quizzes that feature flashcards, multiple choice questions, hints, and explanations. Equip yourself for exam success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

When are independent contractors required to pay taxes?

Once a year, on April 15th
Monthly
Once a year, on December 31st
Quarterly

The correct answer is: Quarterly

Independent contractors are typically required to make tax payments on a quarterly basis. This requirement stems from the need for self-employed individuals to pay estimated taxes throughout the year. Unlike traditional employees whose taxes are withheld by employers, independent contractors are responsible for calculating and paying their own taxes, which includes income tax as well as self-employment tax. These quarterly payments are generally due on the 15th of April, June, September, and January of the following year. This system allows the IRS to collect taxes more regularly and helps independent contractors manage their tax liabilities, preventing a large burden at tax filing time. Individuals who do not make these estimated payments may face penalties and interest on any unpaid taxes at the end of the year. Understanding this requirement is essential for financial planning and compliance with tax laws for anyone working as an independent contractor.