The No-Nonsense Guide on How to Pay Quarterly Taxes When You’re Self-Employed
• Freelancers are responsible for paying their own taxes and are required to pay quarterly taxes.
• For 2023, the dates for paying quarterly taxes are: April 18, 2023: January 1 - March 31 earnings, June 15, 2023: April 1 - May 31 earnings, September 15, 2023: June 1 - August 31 earnings, January 15, 2024: September 1 - December 31 earnings
• If you're a WorkMade member we can automatically calculate and pay your quarterly taxes for you. We'll even auto-save for you. If you don't use WorkMade you should use Form 1040-ES to figure out how much you owe in quarterly taxes. This form will help you determine your estimated tax liability for the year and will provide you with the amount you need to pay each quarter.
How Quarterly Taxes work
So, if you're self-employed or running your own solo business, you'll need to pay estimated quarterly taxes throughout the year. These are payments made to the IRS based on your estimated income, deductions, and credits for the year.
Basically, if you think you'll owe at least $1,000 in taxes for the year, you need to make these payments. If you don't, you'll get hit with penalties and interest charges.
One thing to keep in mind is that these are just estimated payments. You might still owe more or less when you file your annual tax return, so it's not set in stone. If you don't pay enough estimated taxes, you might get hit with penalties and interest charges. But, there's a safe harbor rule that lets you avoid penalties if you pay at least 90% of your total tax liability for the current year or 100% of your tax liability from the previous year (110% if you're a high-income taxpayer).
How to Pay Quarterly Taxes on Your Own
To figure out how much you owe, you can use Form 1040-ES, which is available for download on the IRS website. You'll need to include your income sources, like self-employment income and rental income. Don't forget to include deductions and credits too, like business expenses and healthcare costs. When it's time to pay up, you can send a check or money order to the IRS, pay online using the Electronic Federal Tax Payment System (EFTPS), or use a credit or debit card. You can also set up automatic payments using EFTPS or the IRS Direct Pay system.
How to Pay Quarterly Taxes with WorkMade
Add all your income and expenses to your WorkMade account and we'll automatically calculate your quarterly tax bill and pay both federal and state income taxes for you. You can use our free debit card for expenses and we'll even find your write-offs.
We totally understand that paying quarterly taxes may seem overwhelming at first, but it’s easy if you leverage the best technology and platforms out there. WorkMade can help you file and pay your quarterly taxes in minutes! Remember, it's always a good idea to consult with a tax professional if you have any questions or concerns. Each individual and business tax situation is different and unique, so WorkMade does not provide specific tax advice, only supplying general information based on information published by various taxing authorities, which may change.
Each individual and business tax situation is different and unique so WorkMade does not provide specific tax advice, only supplying general information based on information published by various taxing authorities, which may change over time.