When you file next year the estimated payments will be a credit to your account (like the tax withholding on a w-2) and you will either get a refund or have a balance due based on everything on your return.
One way to figure your estimates is every quarter take your gross income for that quarter minus any expenses for that quarter and then figure out the percentage of the net profit to send in for estimates.
The percentage will be your tax rate plus 15.3% for self employment tax, so if you were in the 10% tax bracket you would send in about 25% of you net profit for that quarter.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
