Hi ecusimano,
Thank you for your question.
Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive income, rather than paying at the end of the year.
There are two ways to pay tax:
- Withholding from your pay, your pension or certain government payments, such as Social Security.
- Making quarterly estimated tax payments during the year.
Since you are no longer employed with an an employer who would normally withhold your taxes every pay period, as self-employed, you are responsible for paying estimated taxes on your income every quarter. This will help you avoid a surprise tax bill when you file your return. You can also avoid interest or a penalty for paying too little tax during the year. Ordinarily, you can avoid this penalty by paying at least 90 percent of your tax during the year.
The estimated tax payment schedule is as follows:
| Payment Period |
Due Date |
| January 1 – March 31 |
April 15 |
| April 1 – May 31 |
June 15 |
| June 1 – August 31 |
September 15 |
| September 1 – December 31 |
January 15* of the following year. |
Your state may require estimated payments as well.
To make federal tax payments, you can use this link: Make a Payment
Here are some startup business tax tips to assist you with your journey as well: Startup Business Tax Tips
