Estimated Quarterly Taxes: What You Need to Know
As a self-employed individual, you may need to pay estimated quarterly taxes to avoid underpayment penalties. The IRS expects self-employed individuals to pay yearly taxes rather than in one lump sum during tax season.
Here’s how to calculate and pay your estimated taxes:
Estimate your income for the year.
Calculate your self-employment tax (usually 15.3% of your net earnings).
Submit quarterly payments (typically April 15, June 15, September 15, and January 15 for the previous year).
You can use IRS Form 1040-ES to calculate and submit these payments.
Hi there! I am Sudip Sengupta, the face behind “Tfin Career”. Tfin Career is a sole proprietorship finance and consulting firm that makes complex tax and financial concepts easy to understand for everyone. With more than 21 years of experience in the field, I have noticed that people cannot make the right decisions in this field. So, I decided to create “Tfin Career” to help individuals and businesses alike. Here I urge those who are confused to make better choices. Also, it is good news for my dear clients and every visitor that I/we are going to start a training module for those who want to choose a career path in Finance and Taxation. Just follow my website.
Thank you for reading this post, don't forget to subscribe!
