First time paying estimated quarterly taxes

[Michael16]

I will begin receiving income for my new small business starting in early June. This will be my first year paying estimated quarterly taxes. Without vouchers from TurboTax, how do I go about making payments? Additionally for the first quarter in which I owe (June 15th), what's the best way to estimate taxes given the short period that I will receive income. I'm familiar with the safe harbor requirement and had planned to simply divide up 110% of last year's taxes across the quarters, but for the first quarter in which I receive income (Q2 of 2022), I may need to prorate differently as my income will be much lower since I'll only have a week or two under my belt.

[SweetieJean]

You can make payments directly on the IRS and state tax websites.  And be aware that you will owe an extra approx. 15% for self-employment taxes. 

[Carl]

Quarterly payments to the IRS can be done at www.irs.gov/payments. ***PRINT YOUR RECEIPT!!!***. I can't stress that enough.

Typically, if you send the IRS 20% of your gross business income each quarter, then come tax filing time you'll be fine.

If your state taxes personal income, you'll also need to make quarterly payments to your state. How you do that, depends on the state. Not all states allow for online payment. Check your state's website for info.

[VolvoGirl · Accepted solution]

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

    90% of the tax to be shown on your current year’s tax return, or

  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

To prepare estimates for next year you start with your current return, but be careful not to change anything.  For Online returns, if you can't get back into your return, Click on Add a State to let you back into your retun.

You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

Or Go to….

Federal Taxes or Personal (Desktop H&B)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

To just estimate the remaining quarters put in that you paid $1 for the missed quarters so it will only calculate the remaining quarters.

How to make the Estimated payments

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-make-estimated-tax-payments/00/25875

Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

The 1040ES quarterly estimates are due April 18, June 15, Sept 15 and Jan 17, 2023.  Your state will also have their own estimate forms.

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2022 Estimate