I am a single member LLC. I paid social security/medicare and income taxes quarterly all through 2019 by filing form 941 using my EIN. The only thing I can find that came even close was to enter them as "estimated taxes". They were not "estimated taxes" in the true sense. I’m using TurboTax Home & Business. There is nowhere that I can enter these taxes already paid and after going through the whole process with TurboTax it now indicates that I owe them. How do I solve this problem?
OK ... so your single member LLC is NOT incorporated and you are reporting the income on the Sch C attached to a personal return correct ???
If so you CANNOT pay yourself wages on a W-2 or file payroll tax reports like the 940 & 941. Wages are ONLY paid to employees NOT to the owner ... it is against the law.
Please seek local professional assistance to fix the mess you find yourself in.
Okay, we obviously have an issue here and will seek professional help. In the future how does a single member LLC pay SS/MC and income taxes throughout the year?
You simply withdraw $$ from the business account, however, the $$ withdrawn are NOT a deduction on the Schedule C.
Under this method, you will pay quarterly estimated tax payments using the 1040-ES and whatever form your state requires assuming your particular state has an individual income tax.
General rule of thumb is to put aside 20 - 25% of every $ you make for estimated taxes ... once you know what your profit margin is going to be the % can be adjusted. Using a good bookkeeping system will help you determine your profit margin.
Also paying in 100 % ( or 110% ) of last year's tax liability will help you avoid an underpayment penalty. Discuss this with whoever is going to help you ... get all the education you can for the buck you are paying.