Independent Contractor here

[mlahood84]

I would like to wait and do the deductions at the end of the year if possible. Just want to make sure i pay enough to avoid penalty.

[Hal_Al]

You should make estimated tax payments for the current tax year (2022) 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. (110% if your income was more than $150K) . Your prior year tax return must cover all 12 months.

 If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”

TurboTax (TT) can prepare the quarterly payment vouchers. In your 2020 software, enter at:

Federal Taxes or Personal (H&B version)

-Other Tax Situations

  -Other Tax Forms

    -Form W-4 and Estimated Taxes - Click the Start or Update button

 On the next screen answer No to the W-4 question

[MayaD]

Can you please clarify what you meant by doing the deductions by the end of the year?

As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves.

Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you. Form 1040-ES, Estimated Tax for Individuals PDF, is used to figure these taxes

Self-Employed Individuals