How much and where do quarterly taxes go?

Forum|Forum|2 years ago
August 30, 2023
3 replies
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When estimating quarterly taxes what is a general rule of thumb for amount? Also, where should those payments be made? The IRS website is janky and I am concerned my $$ will get lost somewhere

Ask the Experts - Self-Employed - Aug 2023

RPZ1

Employee Tax Expert

Hi glad to help!

I will include several links that may be helpful for you in the future. General rule of thumb is to pay 15.3% of income. This is the Self-employment tax amount that is due quarterly. Self-employment taxes are Social Security and Medicare taxes. The IRS website may be "janky" at times but it is definitely better than snail mail. You never know if or when your payments will arrive at the IRS. If the IRS doesn't receive the payments timely they may assess a penalty. Here are the links to help you estimate the quarterly payments:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-guide-to-paying-quarterly-taxes/L6p8C53xQ

https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-pay-and-when/L3OPIbJNw

https://turbotax.intuit.com/tax-tips/self-employment-taxes/tips-for-paying-estimated-taxes/L1nDU0sUs

nizzthizzAuthor

Level 2

Thank you!

VolvoGirl

Level 15

For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

The 1040ES quarterly estimates are due April 18, June 15, Sept 15 and Jan 16, 2024. Your state will also have their own estimate forms.

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2023 Estimate