topic Re: Self Employment Tax in Self employed

Self Employment Tax

Mdeleon2010 — Tue, 24 Feb 2026 07:03:35 GMT

where do I pay or how do I go about paying for the self employment tax? I just found out about it during this forum so I am a little confused as to where and when I need to pay that?

Re: Self Employment Tax

JANETB211 — Wed, 30 Aug 2023 18:43:10 GMT

Hello @Mdeleon2010!

If you have a business or received 1099-NEC income, self-employment taxes of 15.3% of your profit (income – expenses) will be added to your tax return when you file your taxes. You can pay quarterly estimated taxes during the year to avoid interest and penalties for amounts due.

This is a great article on estimated taxes: https://ttlc.intuit.com/turbotax-support/en-us/help-article/estimated-taxes/make-estimated-tax-payments/L5svMESaC_US_en_US

What type of self-employment do you have?

I hope this helps!
JanetB211

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Re: Self Employment Tax

marctu — Wed, 30 Aug 2023 18:44:10 GMT

@Mdeleon2010 thank you for the question. So, the Self-Employment is one part of Estimated Taxes. Remember whether you file as a sole proprietor, partnership or a corporation, individuals often have to pay estimated federal and state taxes on profits from the business. This is an excellent Turbo Tax resource: Beginner's Tax Guide for the Self-Employed

In the abstract let’s do a quick example of self-employment income. For every $1,000 of net income, you would need to pay Self-Employment taxes of 15.3%, plus federal taxes, which range from 10% to 37%, and state taxes potentially as well. Taking the lowest percentages, the tax would be 26.3%. The tax bills could be significant, so you want to get out ahead of this and estimate what your net income is and make estimated payments. There is nothing worse than an unexpected bill.

This is how you would make the payments to the IRS after you have calculated the payment:

You can submit them online through the Electronic Federal Tax Payment System.
You can also pay using paper forms supplied by the IRS.
When you file your annual tax return, you'll pay the balance of taxes that weren't covered by your quarterly payments.

I can also provide a link for the state if it applies to you. Just reply with your resident state.

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Re: Self Employment Tax

Mdeleon2010 — Wed, 30 Aug 2023 18:52:29 GMT

Thank you so much for answering my question!

So right now it is just me, and I am making about $900 a month(some months being lower), without subtracting business expenses from that month.

I know the threshold for quarterly taxes is $1000 so I havnt been doing quarterly, Ive only been doing the yearly taxes. But during the income taxes that I do with TurboTax which i file as a Self employed person, I am not sure if that are taking the Self Employment tax out of that? If that makes sense? If not how would I go about paying it and would it be due when I do my yearly taxes?

also I am in Texas if thats helpful 🙂

Re: Self Employment Tax

Mdeleon2010 — Wed, 30 Aug 2023 18:53:07 GMT

There were two responses to this post 😱 so I dont know which one will be seen buuut:

Thank you so much for answering my question!

So right now it is just me, and I am making about $900 a month(some months being lower), without subtracting business expenses from that month.

also I am in Texas if thats helpful 🙂

Re: Self Employment Tax

JANETB211 — Wed, 30 Aug 2023 18:56:49 GMT

@Mdeleon2010, as long as you are entering your income and expense in the Self Employed section of TurboTax, any Self Employment tax due will be added to your tax return. Perhaps you have had losses after your expenses? If so, then no Self-Employment tax would be due. Does that help?

Re: Self Employment Tax

justarabbitfortaxes — Wed, 30 Aug 2023 19:02:52 GMT

I am a little bit in the same boat as well. I know I need to pay estimated taxes quarterly and I think I am learning how to calculate that. But how do I know if I need to pay income tax and how do I calculate that? Also, I know nothing about what is required for state tax and if that is applicable to me. I am in New York. If you have any suggestions, I would greatly appreciate it. Thanks!

Re: Self Employment Tax

PatriciaV — Sun, 21 Jan 2024 16:59:53 GMT

TurboTax can help you calculate the estimated taxes (income and Self-Employment) you would need to pay each quarter after you complete your tax return for last year. You'll pay these taxes directly to the IRS and/or your state (not through TurboTax). You can also use TurboTax TaxCaster to estimate your taxable income during the year.

Additional Information

@justarabbitfortaxes