I became self employed Apr 1 2023. I set up a sole proprietor LCC. Since then I have around $125K in income from consulting services. I pay my expenses and I also pay myself as a "contractor" out of my LLC account. How do I determine quarterly taxes?

Hi beg121557, thanks for posting an event question.

Congrats on established a Single Member LLC and became self employed on April 1, 2023.

 

A single-member LLC is generally disregarded and not treated as an entity separate from its owner for
federal income tax purposes.

 

In general, a single-member LLC owned by an individual files Schedule C, Profit or Loss from Business within your individual income tax return. You report out-of-pocket expenses in running your business, but you do NOT pay yourself as a "contractor". Your "net income" from gross revenue less out of pocket expenses is subject to income tax and self employment tax.

 

Here is links of Schedule C and its instructions for your reference.

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040 

 

Please refer to 

Pay As You Go, So You Won't owe: A Guide to Withholding, Estimated Taxes, and Ways to Avoid the Estimated Tax Penalty

https://www.irs.gov/payments/pay-as-you-go-so-you-wont-owe-a-guide-to-withholding-estimated-taxes-and-ways-to-avoid-the-estimated-tax-penalty

 

There are many steps to calculate how much to pay the quarterly estimated taxes for your self employment. You are welcome to call us for more assistance.

How do I contact TurboTax?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/contact-turbotax/L2y9ZKpQB_US_en_US

Hope the above helps.

Thank you,

Kitty