Self Employment taxes vs federal taxes

Forum|Forum|1 year ago
August 28, 2024
2 replies
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Have a new sole proprietorship - no employees - self-employed.

This year I have been paying quarterly taxes... but I haven't been subtracting self-employment taxes. Do I need to do that with my quarterly, or just at the end of the year taxes?

Bsch4477

Employee

Not sure what you mean by “subtracting self employment taxes” but they should be paid quarterly.

jwall0144Author

So when calculating the quarterly taxes i need to include self-employment? I have not for the first two quarters....

Bsch4477

Employee

Yes. Self employment income is taxed at 15.3% plus your marginal tax rate.

DashonnonH

Yes, quarterly payments should include your income tax and the self-employment taxes. If you wait to pay income or self-employed taxes when your file the return, you may be subject to interest and penalties.

Be sure to make payments by due dates. If you do not make quarterly payments on time or payments are not enough to cover the net earnings for that quarter, you may still see interest calculated for paying that quarter late.

Here are a couple of resources about how to calculate the self-employment tax:

https://www.irs.gov/taxtopics/tc554

https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/self-employment-tax/L4sqoYLSY_US_en_US

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