Solved: Self Employed with an EIN. How do should I be payi...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Self Employed with an EIN. How do should I be paying tax?

I am an independent contractor/freelancer with no employees. I was recommended by folks at my place of business to sign up for an EIN, which I did. I have been using TurboTax Self Employed to pay my taxes the last two quarters, and am about to pay for the third. I drive for my job so I use it to track miles and expenses and such. The only connections between my EIN registered with the IRS and TurboTax are my name, address and social security number, but on my TurboTax profile I have no place to add in my EIN.

 

I am wondering whether I am doing this correctly or not. I pay my taxes on time and to my knowledge I have paid and written off the correct amounts in all aspects, business and personal, sometimes even uploading receipts when applicable.

 

To summarize, I pay my taxes online through TurboTax Self Employed, not on the IRS website, so I am not using my EIN at all. Everything is going through my SSN. Is this the/a correct method or should I be doing something else?

1 Best answer

Accepted Solutions
Level 12

Self Employed with an EIN. How do should I be paying tax?

EINs for sole proprietors (which is what you are) are only necessary for employee payroll purposes (since you dont have employees, you really didn't need one).  You should be making your estimated tax payments using your SSN, not your EIN.   

 

Sounds like youre doing it correctly.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

View solution in original post

5 Replies
Level 12

Self Employed with an EIN. How do should I be paying tax?

EINs for sole proprietors (which is what you are) are only necessary for employee payroll purposes (since you dont have employees, you really didn't need one).  You should be making your estimated tax payments using your SSN, not your EIN.   

 

Sounds like youre doing it correctly.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

View solution in original post

Level 15

Self Employed with an EIN. How do should I be paying tax?

How did you use Turbo Tax Self Employed to pay the last 2 quarters?  Do you maybe mean QuickBooks Self Employed Version?  Turbo Tax doesn't pay the estimates but can help you calculate the amount.  Did you mail in the 1040ES estimate slips with a check?  

 

And see this prior discussion about EIN vs SSN.  It  may help

https://ttlc.intuit.com/community/business-taxes/discussion/ein-vs-ssn/00/846902 

New Member

Self Employed with an EIN. How do should I be paying tax?

I figured as much. It is nice having my own business registered and all, but I agree I don't need one since I don't and probably won't be have any employees. Also, as @VolvoGirl mentioned, I did mean to say Quickbooks Self Employed. That is how I am paying my taxes.

 

Thank you both for your help! As long as I am doing everything okay, I am okay.

Level 15

Self Employed with an EIN. How do should I be paying tax?

IF you could be paying the estimates thru the TT SE program then you should see the payment being withdrawn from your real bank account or show up on the credit card statement ... if this did not happen then you did not pay them.   And IF the SE program is doing this then you are being linked to the IRS site and you just do not know it ... don't forget about state estimates if needed.  

 

Also the EIN is important to use ... when anyone asks you to fill in a W-9 for 1099 reporting you really should use the EIN so you are not spreading your personal SS# out where it can be picked up for fraudulent purposes.  This is a Identity protection that you really should be using.  On your tax return, in the Sch C section you will enter the EIN and then the Sch C will report both your SS# & EIN so all tax reporting forms in either number get married to the same tax return.  

Level 15

Self Employed with an EIN. How do should I be paying tax?

As I suspected ... you are linked to the federal site for online payments ...  

https://quickbooks.intuit.com/learn-support/en-us/federal-taxes/pay-federal-estimated-quarterly-taxe...

Dynamic Ads
v
Privacy Settings