What are estimated taxes?
Do I need to make estimated tax payments to the IRS?
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2015 SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.
You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
How do I make estimated tax payments?
Can TurboTax calculate next year's federal estimated taxes?
Can TurboTax calculate the estimated payments for next year's state taxes?
Maybe. Some states let you have tax withheld from your unemployment compensation. Have you checked into that? The state's unemployment website might give you a way to have tax withheld. if it does not, then paying some estimated tax might be a good idea, so that you do not get hit with a big tax bill next year. Unemployment compensation is taxable income. If you cannot have it withheld from the state's checks then you can pay estimated federal tax on the IRS site:
Keep good records for yourself if you do that so that you can enter the amount you paid onto next year's tax return.