Almost ALWAYS you are required to make Estimated Tax Payments, unless there is no activity (and it will remain that way), or you are dead-certain that you will be operating at a loss. But the general approach is, when in doubt, make Reasonable Estimated Tax payments rather than taking a gamble.
I will strongly encourage you to either secure a Financial Software to track your Income and Expenses or hire a Tax Accountant, in this way you can almost in REAL TIME assess your level of Estimated Payment Required. In addition, it will make your life WAY EASIER if you have those Financial Statements Ready (Income Statement and Balance Sheet, if applicable) once tax season arrives. I assure you that you will avoid lots of pain and aggravation, otherwise. :).
Also, proper Financial Statements are very helpful in securing Bank Business Loans.
In general, The Estimated Tax Payments should be about 15.3% of your Self-Employment Earnings, but there is more !
Should you actually overpay your taxes, you will get a refund, however, should you underpay your taxes, in addition to the money that you already owe, you will be hit with penalties and interests.
You can have a more accurate calculation of your Tax Liability using a Tax Calculator where you can input the other circumstances surrounding your next year tax filing obligations.
Tax Calculator 2023
Lastly, below are the Estimated Taxes Deadlines:
1. April 15th
2. June 15th
3. September 15th
4. January 15th
When to Pay Estimated Tax
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