Self employed

Hi Jennifer!

The IRS expects quarterly tax payments if you are going to have an outstanding tax liability of over $1000 at the end of the year after all other payments are considered.  They are looking at your total tax liability (so the combined income taxes and self employment taxes.)  

You are correct that the 15.3% of self employment taxes on your $5K of income would be $765.  

To determine if you need to make estimated payments you need to add that self employment tax to any income tax you would owe on your return as well.  Based on what you've provided, with $5K of self employment income and $5K of wage income, you are not likely to have an actual income tax liability (this assumes $10K in total income, less the standard deduction for single of $13,850, resulting in taxable income of $0.  The income tax on $0 is going to be $0.)    All of which means you are likely NOT required to make the estimated tax payments, but you will need to be prepared to make a payment of your entire tax liability for self-employment taxes by next April.   Not being required to make the payment doesn't prevent you from making one if you want to lower your expected balance due while you've got funds coming in from the work - but based on the facts you've provided, in your situation, it's optional.