Hello, I recently moved from a w-2 employee to sole prop. in CT. I made the switch this August 1st. Do I need to file my quarterly taxes this year for the new self employed work or can I wait to file quarterly in 2024, and submit all my self employment income along with my w-2 for 2023 in one fell swoop this spring? Thanks!
Congrats on the new business!
The tax system is a pay as you go. The quarterly payments are due as follows.
|
Payment Period |
Due Date |
|
January 1 – March 31 |
April 15 |
|
April 1 – May 31 |
June 15 |
|
June 1 – August 31 |
September 15 |
|
September 1 – December 31 |
January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax |
So, if you had earning in August, you’d pay an estimate by September 15th. Then the fourth quarter payment will be trued up by January 15th.
Best,
Teri H
Congrats on the new business!
The tax system is a pay as you go. The quarterly payments are due as follows.
|
Payment Period |
Due Date |
|
January 1 – March 31 |
April 15 |
|
April 1 – May 31 |
June 15 |
|
June 1 – August 31 |
September 15 |
|
September 1 – December 31 |
January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax |
So, if you had earning in August, you’d pay an estimate by September 15th. Then the fourth quarter payment will be trued up by January 15th.
Best,
Teri H
Hi ecusimano,
Thank you for your question.
Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive income, rather than paying at the end of the year.
There are two ways to pay tax:
Since you are no longer employed with an an employer who would normally withhold your taxes every pay period, as self-employed, you are responsible for paying estimated taxes on your income every quarter. This will help you avoid a surprise tax bill when you file your return. You can also avoid interest or a penalty for paying too little tax during the year. Ordinarily, you can avoid this penalty by paying at least 90 percent of your tax during the year.
The estimated tax payment schedule is as follows:
| Payment Period | Due Date |
|---|---|
| January 1 – March 31 | April 15 |
| April 1 – May 31 | June 15 |
| June 1 – August 31 | September 15 |
| September 1 – December 31 | January 15* of the following year. |
Your state may require estimated payments as well.
To make federal tax payments, you can use this link: Make a Payment
Here are some startup business tax tips to assist you with your journey as well: Startup Business Tax Tips
Hello @ecusimano
Thank you for joining us during our live event! We are so happy you are here!
Congratulations on your new adventure! Depending on our net profit, will depend on if you should make estimated payments or not. Since it is less than half the year for 2023 you could do it all in one "fell swoop" this spring, but please be aware of the potential penalties if you owe more than 1,000 for IRS.
Here are the requirements for the IRS and Connecticut.
I hope this helps. If you have any further questions, please reply here and I will be more than happy to follow up!
Holly W