How to make quarterly payments as a self employed US citizen?

 

Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you.

A form 1040-ES, Estimated Tax for Individuals is used to figure these taxes. You will need your prior year’s annual tax return in order to fill out Form 1040-ES.

The form 1040-ES contains blank vouchers you can use when you mil your estimated tax payments or you can make the payment electronically using the EFTPS.

For those in their first year of self-employment, you will need to estimate the amount of income you expect to earn for the year. If your estimated earnings are too high, you can simply refigure your estimated tax on second 1040-ES form.

Contact us for more US tax advice