Thanks for the question Jhuff3000!
If you work as an independent contractor, a sole proprietor, a member of a partnership that conducts business, or a person who otherwise runs a business as your own, you likely need to pay quarterly estimated taxes.
TurboTax does have tools to help figuring out the taxes: https://turbotax.intuit.com/tax-tools/.
You can use your new total annual income to estimate your quarterly payments for the next tax year. You can also use software like QuickBooks Self-Employed to track your income, expenses, and deductions throughout the year, which will help with estimating your quarterly payments.
How to pay quarterly taxes
Once you've calculated your quarterly payments,
- You can submit them online through the Electronic Federal Tax Payment System.
- You can also pay using paper forms supplied by the IRS.
- When you file your annual tax return, you'll pay the balance of taxes that weren't covered by your quarterly payments.
You have other options as well when you show an overpayment of tax after completing Form 1040 or 1040-SR. You can apply all or part of your overpayment to go toward your estimated tax for the current tax year rather than be refunded.
Consider this amount when estimating your tax payments for the current tax year. You can treat the overpayment credited toward your estimated taxes as a payment made on the April deadline for the first quarter of the current tax year.
After you start paying estimated taxes, be sure to keep a separate record of the dates you paid them and how much you sent for each period. If you don't keep accurate records, it can take you longer to prepare your income tax return, and you may miss one or more of the payments you made. If you pay estimated taxes, be sure to claim credit for them when you file your tax return.
Having enough tax withheld or making quarterly estimated tax payments during the year can help you avoid problems at tax time.
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. So to avoid underpayment penalties, it is best to pay quarterly taxes than paying at the end of the year.
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