Quarterly taxes

[danielle_b4424]

Hi! I'm not sure where to start with quarterly taxes. I have been self employed for almost 2 years but I only do taxes at the end of the year. What is the benefit doing it quarterly?

[MarthaT]

Hello and thank you for your question.  The advantage of paying self-employment taxes quartely is that you avoid penalties and you avoid paying a lump sum at the end of the year.   Sometimes you might have zero Federal Income tax but you might have Self-employment tax.  The self-employment tax is the social security and medicare as employee and employer from your net income on your business (Schedule C).  It is 15.3% (12.4% SS + 2.9% Medicare) of your net income.   You can find more information at A Guide to paying quartely taxes at https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-guide-to-paying-quarterly-taxes/L6p8C53....

I hope this answered your question