Congratulations @Taxes1991 for becoming a freelancer! One of the responsibilities that you have now is to estimate you income taxes due for the year and remit by quarter. You are absolutely asking the right questions. It is indeed estimated on NET profit (not gross). One thing new taxpayers forget is the Social Security and Medicare (self-employment) tax that they need to include in the estimated tax. So, you will need to calculate how much INCOME tax you should remit for your business AND remit the Self-employment tax as well. take a look at this article: The Self-Employment Tax
You can pay weekly, biweekly or whatever interval suits you, as long as you pay in full the amount due for that period. You can also estimate your tax liability for the whole year and pay the estimated tax early in one lump sum by the 15th of April of the current year. Estimated tax payments are due four times in a tax year. For calendar year taxpayers (which is most individuals), the due dates are April 15, June 15, September 15 of the current year and January 15 of the following year or the next business day if the due date falls on a weekend or holiday. If you have not paid any estimated payments this year, you may need to "catch up" for months not yet reported by September 15.
You can make your payment directly to the IRS with directly at their website. Just be sure to make the appropriate time period you want the payment made to.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
