I'm new to self employment how should I file for IRS quarterly or yearly?

[LunaBelle]

I started working freelancing as an tutor for about a year now. At first I hardly made anything . It's taken several months to get clientele. I pay taxes monthly to my state. Earlier this year I tried to file at IRS. I've tried to look at the IRS website but I'm very confused to which form and where to apply? Is it quarterly ,monthly or yearly? Earlier this year I just paid when I filed my taxes for the year. I want to file regularly but I don't know how to go about it. Since I'm not making much should I just wait and pay yearly when I file? Where should I go and which schedule should I use ? Should I file monthly or quarterly ?

Thank you for your help!

[Loretta P · Accepted solution]

Hello @LunaBelle, congratulations on your new business.

The IRS requires taxpayers to submit their withholding/estimated tax payments as you go instead of waiting until the end of the year.  If you try to wait until the end of the year and pay it all with the return, you can be subject to penalties and interest for the late payments.  I would make your 3rd quarter payment when due and your 4th quarter payment by January 15, 2024.  Make sure to mark the 4th quarter payment as a payment for 2023. 

You can make payments directly on the IRS website.

Make a Payment

These articles will explain about pay as you go and ways to avoid the estimated tax penalty.

Estimated Tax FAQs

Pay As You Go, So You Won't Owe:  A Guide to Withholding, Estimated Taxes, and Ways to Avoid the Est...

[VolvoGirl]

Filing quarterly means to send in estimated payments to cover the self employment tax since you don't have withholding taken out like if you were an employee on a W2. There isn't a tax return to file. You still file all your self employment on your personal 1040 tax return.

You may need to send in quarterly estimated payments. 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…..
https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Or you can pay on the IRS website. Be sure to pick 2023 1040ES payment
https://www.irs.gov/payments