Estimated tax related to Self Employment

[Caroldehaven]

Hello,

I have a small business and do have an EIN.  We had a Partnership and filed a Partnership return for 2024.  We, going forward, will be operating under a single member LLC structure and for 2025 taxes, tax season 2026, will be filing the business tax on a schedule C with our personal taxes.  I am about to make an estimated tax payment for the business and I dont know if I should use the Business EIN or if I should use my social security number to make the estimated tax payment in this circumstance?  (Partnership with EIN filing 2024 return though moving to Single Member LLC filing on schedule C for 2025)  I need to make estimated payments for 2025 and you have to put either EIN or Social Security number. 

Thank you,

Carol

[AmyC]

You can always make an estimated payment under your social security number since all the business EINs are connected to the SSN.

Side note:

Struggling with the word "WE". "We, going forward, will be operating under a single member LLC structure"

WE isn't possible on a sch C that is a sole proprietorship. If you are in a community property state, you each file your own Sch C and split everything 50/50 (if you meet the rules). If you are not in a community property state, you are a partnership, S-corp, business.

[Caroldehaven]

Amy,

I said we, because we are husband and wife who were in partnership.   We withdrew one member out of LLC and going forward will be filing business income on a schedule C with individual joint taxes return due to now being a single member LLC.  My husband has a regular job and has a W2.  We are in Minnesota and not in a community property state.  Due to business structure now being a single member LLC, we, husband and wife, will be filing a joint individual 1040 and doing the business aspect of taxes on a schedule C.  Should we use the EIN or my social security number for estimated taxes since I remain in the single member LLC?  Or would you still say I should do estimated tax under my social security number?  I just want to do things correctly. 

Thank you kindly

[AmyC]

Awesome! Thank you for clearing that up! Yes, you alone moving forward can report the estimates under your social or the EIN and actually with your new information, you have another option. This will sound bizarre, but, the two of you are MFJ so you can have him take more out from his job to cover your self-employment. All of the business income is being reported on Sch C inside of your joint return. The money withheld from his job or the estimated taxes you pay will be reported on your joint return for credit. 

The self-employment taxes you pay when filing will be credited to your Social Security account along with your income.

[Caroldehaven]

Oh thank you!   I'm almost there!  Should I include the social security and medicare tax amount with my estimated payment to IRS?  For instance, I understand that I am to pay estimated income tax plus allow at least an additional 7.5% for Security and Medicare.  For instance, I will pay estimated payment for income tax and social security together to IRS in one payment each quarter?  How does the Social Security and Medicare payments get to where they need to go?  How does IRS know what to put towards Social Security and Medicare?  Do I need to mail the Social Security and Medicare to any place in particular or does it just go in together with the estimated income tax?  When we complete our 2025 taxes next tax season, it that when the social security and medicare is reported to social security?  I don't understand how they are aware of what one has paid when in self employment.  The social security and medicare just all seems mysterious!

Thank you 

[KeshaH]

Yes you should estimate your full tax liability, including your self employment tax which is made up of Social Security and Medicare taxes, and send that full payment to the IRS quarterly. The self-employment tax is an additional 15.3% on top of your regular income tax. When you file your return, your return will show the amount of your payments that are allocated to self employment tax.