small business owner

Forum|Forum|4 years ago
July 27, 2022
1 reply
22 views

hello,

how do I determine what I owe in quarterly taxes as a small business owner and how do I go about filling them in the state of Texas?

thank you!

carolineb

Level 5

Hi! Self employment taxes are subject to three federal taxes: federal income (based on your tax bracket), Social Security (12.4%) and Medicare (2.9%). Since the lowest federal tax bracket is 10%, a good rule of thumb is to set aside 25% of your net profit (income less expenses) and send that amount to the IRS each quarter. Your income should not be subject to state income tax as long as your business is located in TX.

Here is a link for estimated tax payment instructions and vouchers: 1040 ES Each voucher has the due date clearly printed on it. Since the first two dates have already passed, you can include any payment for the first two due dates with your third payment. You can also make the payments online at IRS Direct Pay Just be sure to print out your confirmation page for your records.

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