@fanfare
What are you talking about?
@skerns002
as a self-employed person, no matter your age, you are required to file a tax return that includes a schedule C, which reports your business, income and business expenses. If you have net profit from business, that income will flow to your main form 1040 where it is combined with any other taxable income, such as pensions, or Social Security. Your business income also flows to schedule SE and you pay self-employment tax, this is about 15% and is the equivalent of Social Security and Medicare taxes.
You don’t have withholding because you don’t have a W-2. Instead, you are required to pay estimated taxes quarterly. You should estimate your quarterly income and pay estimated quarterly taxes. The estimated taxes are due April 15, June 15, September 15, and January 15. If you owe more than $1000 in income tax when you file your tax return and did not make estimated payments, you will be assessed underpayment penalties and interest even if you pay in full when you file your tax return.
The idea that paying taxes is optional is a bit off the wall. While it is true that you don’t have withholding, because you are not a W-2 employee, you must make the estimated tax payments or face penalties when you file your tax return. The estimated tax penalties must cover your income tax and your self-employment tax.
