How do I go about paying quarterly payments for self-employment tax to the IRS? What forms do I need?

Question

I need to know how I go about setting up quarterly self-employment taxes to the IRS?  That's just the 15.3 percent that I have to pay quarterly, correct?  I don't have to worry about income tax and state tax until the end of the year, right?

Answer 1

Yes, you most certainly have to worry about income and state taxes before the end of the year.

Here's an explanation of the goal of estimated taxes, as simple as possible.  

The main objective of estimated taxes is:

-- To pay as much money in taxes as you did in the previous year, usually in four equal installments --, or if you plan on earning less (and owing less taxes), to pay an amount as close as possible to what you'll owe.

So, take out your 2008's 1040 (the one that's due by April 15th), and take the amount of TOTAL tax in the 1040, divide it by 4, and send the payment *SEPARATELY* from your 1040 (this is a very simplified way of saying it...1040-ES will be more detailed).  Your state will probably have a similar setup.

Again, the most important thing you can do is fill out the worksheet and read the details in the 2009 1040-ES form, available at irs.gov

Answer 2

I have attached a link below to help you determine how much to make for your estimated payments.  Also it contains the vouchers to be able to make those payments.  

As for the amount to pay if you are self employed, you need to not only pay toward the self employment tax, but also the federal and state income tax.  Do the worksheet that is shown to help you determine how much you should pay each quarter.  There are many factors including your other income, deductions and credits that will affect the amount you should pay.

Laura H – H

Answer 3

Pay quarterly taxes has its ups and downs. If you do not make your payments onn time you will be penalized. It is only the 15.3 percent for now. You can contact the IRS about getting set up to make quarterly payments. If you owed this year your tax preparer can make your quarterly estimated payment coupons  for you.

Answer 4

It's for paying all the taxes you would expect to pay -- self-employment, plus regular income tax.