Self Employed Questions About Federal and State Tax

[justarabbitfortaxes]

I receive a 1099 NEC and know I need to pay self employment tax. I earn about 3000 give or take a couple hundred through this. It is the only income I receive. What I am still unsure of is:

Are federal and income taxes the same thing?

How do I know if I need to pay them?

How do I calculate them?

Are they also payed quarterly at the same time as the self employment?

How do I know if I need to pay state tax?

How do I calculate state tax?

Are state taxes paid quarterly as well?

I am in New York State. Thanks for any help!

[Jackstar221]

The main difference between federal and state income taxes is that federal taxes fund the federal government and state taxes fund the government in your state. All U.S. taxpayers process their federal income taxes through the IRS, but each state has its own taxing authority.

For federal (IRS) estimated tax payments, please use this link to calculate your amount due for the end of the year, this will inform you whether you should make estimated tax payments.https://www.irs.gov/individuals/tax-withholding-estimator 

Yes, you should make you federal estimated tax payments quarterly, although you can just make an estimated tax payment at the end of the year.

Here is an article you can refer to regarding NY estimated tax payments. https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-payments/view-change-new-york-estima... 

Also, here is a NY income tax calculator. https://www.forbes.com/advisor/income-tax-calculator/new-york/ 

You should also make NY estimated tax payments quarterly.

Here is a link to EFTPS, where you can make electronic federal estimated tax payments quarterly: https://www.eftps.gov/eftps/ 

Here is a reference for making NY estimated tax payments: https://www.tax.ny.gov/pay/ind/pay-estimated-tax.htm 

Thank you,

John

CPA

[justarabbitfortaxes]

Thank you for the reply. It was helpful!