Self employed

Hi rwhalen1, thank you for posting an event question.

Congrats on starting a new business last week.

Please use TurboTax Tax Caster to estimate your tax year 2023 tax liability, if any.

https://turbotax.intuit.com/tax-tools/

Generally, you must make estimated tax payments for the current tax year if both of the following apply:

• You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
• You expect your withholding and refundable credits to be less than the smaller of:
  • 90% of the tax to be shown on your current year’s tax return, or
  • 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

Depending on your other income and overall estimated balance due, net self employment of $2,000 adds limited income tax and self employment tax (approx. 15.3% of net earnings).

Recommend to use the above $1,000 rule. If estimated balance due for tax year 2023 is less than $1,000, you definitely can wait until last quarterly payment due date of 1/15/2024.

Below is for your information.

Underpayment of Estimated Tax by Individuals Penalty

https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty 

Pay As You Go, So You Won't owe: A Guide to Withholding, Estimated Taxes, and Ways to Avoid the Estimated Tax Penalty

https://www.irs.gov/payments/pay-as-you-go-so-you-wont-owe-a-guide-to-withholding-estimated-taxes-an... 

Hope the above helps.

Thank you,

Kitty