Self employed

Hi @bozley2016,

Thanks for your question. I'd be happy to help!

Paying quarterly estimated taxes does catch people by surprise. The IRS is a pay-as-you-go system, meaning they want their tax money as you earn in throughout the year. When you are an employee, that is normally taken care of by way of your federal and, if applicable, your state tax withholdings. When people start a side job, there is not any withholding on their net income, so that is why self-employed taxpayers pay in these quarterly estimated tax payments. Then, when they file their income tax return, they make sure to include in their tax return that they made these payments. 

I am providing several links below to various resources that will help you better understand what to do:

• https://turbotax.intuit.com/tax-tools/
• https://turbotax.intuit.com/tax-tools/expense-monitor/
• https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-guide-to-paying-quarterly-taxes/L6p8C53...
• https://ttlc.intuit.com/turbotax-support/en-us/help-article/estimated-taxes/make-estimated-tax-payme...
• https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-payments/enter-estimated-tax-payment...

I hope this information is helpful, @bozley2016 ! I'll stay tuned in case you have a follow-up question. Thanks again!