Estimated tax payments made four times per year to cover self-employment income taxes.
Quarterly taxes (estimated tax payments) are how self-employed individuals pay taxes throughout the year since there's no employer withholding. You're required to make these payments if you expect to owe $1,000 or more when you file your return.
If you earned $120,000 last year and owed $28,000 total, paying $7,000 each quarter ($28,000 total) provides safe harbor from penalties.
Estimate your annual income and deductions, calculate income tax + SE tax, then divide by 4. Or use safe harbor: pay 100% of last year's tax (110% if AGI was over $150,000).
IRS Direct Pay at irs.gov is the simplest option. You can also use EFTPS for scheduled payments or mail a check with Form 1040-ES voucher.
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