How To Pay Quarterly Estimated Taxes in 2022 (Self Employed, US)
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There are lots of reasons why getting comfortable with all the confusing, scary “tax stuff” will benefit you when you’re self-employed. The most obvious being… you legally have to pay taxes. So if you’re not paying quarterly estimated taxes, you’re gonna be writing a fat check at tax time that might include late payment penalties. (Yikes!) But more than that, once you understand the basics, you can start to develop processes that let you take care of business quickly and confidently. And third, when you fully understand your tax obligations, you can keep them in mind when you’re planning for your business and pricing your products and services.
Generally speaking, self-employed individuals pay more in taxes than other taxpayers in the United States. (That’s because you pay both the employer and employee portions of social security and medicare. Bummer.) According to the IRS, you need to pay quarterly estimated self-employment taxes if you are going to bring in at least $1,000 in net income that year and are a sole proprietor, independent contractor, freelancer, owner or member of an LLC, or are otherwise in business for yourself, including part-time.
