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Get your taxes done using TurboTax
Hi JTABACK17, thank you for joining TurboTax Special Form today.
Congrats on starting a business in July which turned profitable in August.
Assume you are a sole proprietor or a Single Member LLC, you would report your self employment income and expenses in Schedule C; hence you might consider using a spreadsheet or a bookkeeping program to record such business income and expenses.
Once Schedule C net profit is determined, there are other tax considerations such as qualified business income deduction, self employment tax liability (Social Security and Medicare taxes approx. 15.3%) half of which is also a deduction. All these are calculated by TurboTax software.
The net profit also determines the maximum amount you can contribute to a SEP-IRA, which is an adjustment to income. There is special rule for "Deduction Limit for Self-Employed Individuals." Please refer to pages 7 and Chapter 6 of IRS Pub 560 Retirement Plans for Small Business.
https://www.irs.gov/pub/irs-pdf/p560.pdf
I recommend that you set up a Test ID using TurboTax Online 2020 program to project the 2021 income tax outcome for both Federal and CT state.
Federal estimated tax payment - 3rd payment was due 9/15/2021, 4th payment 1/18/2022. If cash flow permits, you should make a payment as soon as possible.
Direct Pay With Bank Account
https://www.irs.gov/payments/direct-pay
Form 1040-ES 2021 Estimated Tax, vouchers on last pages
https://www.irs.gov/pub/irs-pdf/f1040es.pdf
CT state income tax rates range from 3% to 6.99%. Estimated payment rules are similar to that of Federal. Due dates: April 15, June 15, September 15, January 15
Form CT-1040ES tax payment coupon
https://portal.ct.gov/-/media/DRS/Forms/2021/ESForms/CT1040ES-flat0121.pdf
Page 8 of above link has instruction if you like to pay electronically.
Hope the above helps.
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