The only thing you have to do with estimated taxes is make a payment to the IRS. You can mail a check, or you can make an electronic payment at www.irs.gov/payments. Payments are due four times a year for the income earned in the previous quarter.
You only file one tax return for the year, at the end of the year and before April 15. This tax return calculates your overall income, your overall deductions, and your overall tax owed. If your estimated payments were more than the tax you owe you get a refund, if your estimated payments were less than the tax you owe, you owe one more payment.
The trick is calculating the amount of the estimated payment. You can use any method you like, but the more detail you use the more accurate it will be. If you are self-employed and expect to file a schedule C at the end of the year, then your estimated payments should include income tax and self-employment tax on your net profit from self-employment. You can also take into account your personal deductions, like charity donations, mortgage interest, and so on. Form 1040 – ES has a worksheet that is very similar to a tax return, that you can use to estimate your taxes for the quarter. You can also estimate your taxes if you keep your business records in QuickBooks. There maybe other methods as well.
