quarterly taxes

[Janet_21]

Hello, 

I moved from upstate NY to Arizona in early 2022 and continued to work remotely in upstate NY through the end of January, 2023 (for which I will receive a W-2).  I started a consulting practice, an LLC, in 2022 and showed a loss on schedule C of my 2022 tax return.  I am now generating income from my LLC in 2023. I have not yet paid quarterly taxes in 2023 and don't know how to do it.  I presume I need to pay both federal and AZ state quarterly taxes.  Does TurboTax help with that? How do I do that?

Thank you 

[Holly W · Accepted solution]

Hello @Janet_21 

Thank you for being here and participating today!  We are so happy you are here.

Congratulations for generating income on your LLC.  While TurboTax does not do the actual calculations, we can arm you with the tools necessary to do what is required.  Quarterly taxes are typically done 4 times a year, 1) April 18, 2) June 15, 3) Sept. 15, & 4) Jan 16.  Even  though you haven't started making payments, it's not too late.  Here is how you can determine how much you should pay

IRS:   1040-ES & Worksheet

AZ:   140es Form & Worksheet

Both will have worksheets to determine how much will need to be paid, and how to make the payments, along with requirements.  TurboTax also has several Tools & Calculators to assist and provide more detailed information.

Keep up the good work and let us know if you any further questions!  We will be happy to help!

Holly W

[Janet_21]

Very helpful, thank you!

[Esther M]

Hello Janet_21,

Congratulations on becoming self-employed even though it comes with some tax responsibilities. As a self-employed individual you're responsible for estimating and paying quarterly to the IRS and to the state of Arizona. I assume your business is a single-member LLC, in which case the LLC itself is not taxed at both federal and state level but you're still required to pay estimated taxes, if you meet certain conditions:   

1. At Federal level - you must pay estimated taxes if you expect to owe $1000 or more when your return is filed.

2. At State level - If you meet the threshold as a full year resident

Please see the link below for more information.

IRS - Who Must Pay Estimated Tax  

Single-Member LLCs in Arizona 

Estimated tax payments are due as follows:

• January 1 to March 31 – April 15
• April 1 to May 31 – June 15
• June 1 to August 31 - September 15
• September 1 to December 31 – January 15 of the following year

 You cannot prepare or pay your Estimated taxes through Turbo Tax but you can do both at the IRS website here:

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

You can also use Turbo Tax Calculators to estimate your self-employed taxes. Click here

Self-Employed Tax Calculator 

I hope this answers your questions.

Rgds,

Esther M