Crafting business with end of year income

[katewyllie]

I have a small business (primarily Etsy and one or two craft shows) and I earn 90% of my business income in November and December. I am still building up, but is there a way to capture this so I can pay taxes after actually earning money rather than try to figure out how much I might make at the end of the year?

[Katherine S 63]

Great question.  

I would suggest that you do a tax estimator to see what you might be owing and make estimated taxes based on that estimator.  Here are my favorites:

Remember that they do not save so they will time out.

IRS Tax estimator

Taxcaster

You can use these throughout the year to see if you are owing.  

Here are my favorite Self Employment links:

Self employment tax

Self employment tax hub with calculator

Self Employment income and expenses

The Self employment tax hub with calculator link is nice to see how much you need to be withholding.

There is a spot that lets you avoid underpayment penalties.  Here is how to find that form:

httpshttps://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/add-form-2210/L7qgI9Ie6_U...

This might help to reduce the amount of the penalty if you pay only one or two estimate tax payments per year.

Katie S