Quarterly Payments

[cclee123]

Hey there!

One final question- as a freelancer, am I expected to pay both FICA and federal income taxes quarterly? So, 27.3% (15.3 + 12% after my tax bracket) as well as the additional $1100 before the annual April filing? I’ve only paid FICA thus far, unaware of the rest until today. Will I be penalized heavily if this is considered a late payment?

[JBedford]

Hi, @cclee123 , thanks for your question! The idea behind estimated payments is to satisfy as much of your total tax liability as possible. That being said, if you pay in a total of 100% of your 2022 tax liability from Line 24 of your Form 1040, or 110% if you make over $75,000 as a single filer or $150,000 if married filing jointly in self-employment income, in four equal installments, that's considered a "safe harbor" and you won't get underpayment penalties. And even if you make the payments late, penalties can be ameliorated by paying as soon as possible. 

Hope this helps, please let me know if not!

[CLBHESQLLM]

Hi @cclee123, you can find specific information about underpayment penalties here:https://www.irs.gov/forms-pubs/about-form-2210.

This is also a useful article: https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

I hope this helps!

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"