2020 Estimated Tax Payments [Self Employed]

[@TravisSickle]

I'm using two methods on how to calculate estimated tax payments. 0:00 Intro 1:26 Example for Estimated Tax Payments 2:18 Self Employment Tax Calculation 3:37 Beginning 2020 Estimated Tax Worksheet 3:53 Itemized versus Standard Deduction 4:18 Qualified Business Income Deduction 5:52 Federal Income Tax Calculation 6:09 Federal Income Tax Brackets 8:44 Self Employment Tax 9:29 Estimated Tax Payments 10:10 IRS W4 Online Tax Estimator

[@CS-ry9np]

This video was so helpful I could almost cry. No other person on KZbin explained and calculated it better than what you did. Thumbs up for me! It has cleared up all my confusions as a self-employed person. Thank you!

[@adventuresofhootandwootthe287]

I cannot express enough how grateful I am for this video. No one seema to be able to help and with COVID money is tight and I needed to do my own taxes. Thank you.

[@saraziel1140]

This was so helpful! I'm new to self-employment, and this was such a straight-forward, understandable way to break down how to calculate these taxes. Thank you!!

[@suefuller3014]

Thank you very much explaining how to figure Estimated Tax Payment. You did a prodigious job.

[@TravisSickle]

Glad it was helpful!

[@mrwilly41]

Dude....I can't begin to tell you how helpful this was to me!! Thanks, Travis.😊

[@philipnorman9364]

Saved me so much time trying to wade through this myself as a new business owner I can’t thank you enough!

[@fromjaxflorida]

I'm learning taxes and doing the course via online. I'm so lost. But your walk through helps clear the confusion.

[@StephenCarlockVO]

Easily the best video on this topic I've seen. You're a life-saver for my business - thanks for the content!

[@TareqAlbahri]

Best Video on the internet for Estimating Tax Payments for the Self Employed. You have made it so easy and clear. I cannot thank you enough!

[@llyssahemin]

THANK YOU FOR THIS. I was just staring at the 1040-ES for 2021 trying to comprehend what everything means and it literally felt like I was trying to read simlish. So thank you!!!!

[@desdes8200]

Thank you so much for posting this comprehensive walk-through! Not only am I new to self-employment but I'm also naturalized US-citizen so all of this is new and a bit confusing to me... Although it's 2022 I was able to calculate my taxes thanks to your video.

[@magdalenagrooms8965]

Thank you for using example numbers. This helped me a lot.

[@elisagreenwald9062]

So so helpful and just open my eyes to a lot of the tax situation I had no idea about. This is technically my first year having to file and I didn't realize how I had to pay all the different taxes. You made this so easy to understand. Thank you!!!

[@CheddaThisABanger]

helped me alot thanks

[@JacobEverett-qe4uu]

Very helpful. Thank you.

[@MsGrace-iw2xz]

Great work Travis! Thanks for the informative work and great breakdown in the material.

[@krackerthanas2226]

thank you so much! best video i've found

[@akhilkumarraparthi8179]

it's helped me thanks for your video .

[@philipnorman9364]

Wow fantastic video

[@TravisSickle]

Thank you so much 😀

[@mhess427]

Can someone explain how he started the sample formula by multiplying 100,000 by .9235?

[@AlaskaFearfulTV]

Can you pretty please do a video on How and when you would file for 2210 for annualized quarterly estimated taxes it is extremely confusing and I could really use the help!!!

[@TravisSickle]

maybe in the future.

[@kellydukes6339]

I wish you could help me with my taxes!!!

[@austinyarbrough184]

Great video brother! very well done!

[@gabirican4813]

Thanks!

[@gabirican4813]

You are welcome! 👍

[@sabastionmiller1726]

Best video by far

[@javieruribe6070]

Very helpful, thank you.

[@TravisSickle]

Glad it was helpful!

[@poseyparks3693]

Thank you so much! You really helped me.

[@bruno_sanchuk]

How about schedule C? When should I subtract it ?

[@drivera453]

very knowledgeable. i like your videos very much. Your explanations are very easy to understand. can you do a video how to file Uber and Lyft returns. Thank you

[@DesignBuildFixReview]

I figured out my estimated federal taxes, medicare taxes and social security taxes do I add all those up and put that amount into the 1040es form and pay that once a quarter or are there more forms? One other question on the estimate that I pay every quarter do I pay the full 15.3% for SS and Medicare or do I pay only 1/2 of that? I have a full time job and do side work that doesn't pay all that much.

[@alibobobaba1337]

So I’m this instance, you’ll essentially walk away with $80,000 from the $100,000 before calculating gas, meals, etc yadda yadda right?

[@stephenmurphy7501]

Very helpful!

[@texasRoofDoctor]

Hello, where do you add the SE tax to the 1040?

[@damienbosse]

Could you show an example where one of the married people have a self-employment income and the other has a standard W2? Maybe you already have a video on that

[@TravisSickle]

I do have a video on it.

[@paulcali08]

I'm now retired and have only IRA distributions and savings interest as income. Since these amounts will often vary throughout the year, can I just estimate my taxes that were due for the previous quarter, and pay the IRS by the deadline dates? Or does the IRS frown on this, most likely penalize me, even though I make quarterly payments of the correct amount?

[@MattDiamond]

Great video!

[@JesseJamesSCO]

Do I have to pay quarterly if I only made $250 dollars first quarter? New Jersey

[@benjiebarker]

1:37 where do you get the .9235 ?

[@juneharrison6324]

If you are married and filing joint, do you have to account for the spouse's income who has a W-2? I feel my side job is not going to be worth it if my whole check is just going to pay the taxes.

[@Zip597]

Thank you so much for this! Quick question: Is $100,000 the person's revenue minus their expenses and deductions? I.e. Are we assuming that the person has already done the math to quantify their actual income (not just their revenue) before moving onto the self employment tax calculation?

[@TravisSickle]

Correct.

[@CheddaThisABanger]

my net income below the standard deduction

[@TravisSickle]

Still file.

[@CheddaThisABanger]

@@TravisSickle thanks

[@Mcgurkyyy101]

What happens if you overestimate your income for the year and end up paying more in estimated taxes or underestimate your income and end up under paying?

[@NeedJesusForever]

Thank you very much!

[@SuperTrollin101]

ty for the gulls

[@tashastravel5904]

Helpful, thank you

[@jeffdundas7913]

It would have been just dandy if you linked the IRS tax estimator in the description. Ive been trying to estimate taxes for hours and that tool would helped but it's nowhere to be found online. Very annoying.

[@CoachJenAnytime90]

Video started off great then confused me and put me more in a state. Problem is when you got to the married filing I'm filing seperate and based on grossing 25k a year (just started) so I fall in the line with no numbers to subtract and got stuck on how to figure this out. Because the total to take to the sheet is 9,010. Wth

[@TravisSickle]

I'm not completely following you. Explain again.

[@bojiam4818]

What calculator app are you using on your phone? Does the cares act 401k loan end this month? Keep the vids coming.

[@TravisSickle]

10bii-calc-hd

[@rkbest9783]

Thank you so much. So the 50% deduction you mentioned is probably the QBI which is not applicable to all cases? I got a consulting fee this time, does that make me eligible to use QBI deduction?

[@inthedaaark]

Very helpful! Is it possible to factor in the standard mileage deduction with the estimation as well? Just curious if there’s a difference since I do gig work.

[@TravisSickle]

Yes, dedications of any kind will lower it. This is a good question, I’ll see if I can do a video in the future.

[@frankiecarrrierivg03]

I just file my taxes I file W2 and 1099 and still got a decent refund. If I did the estimated quarterly taxes could’ve I got a larger refund.

[@headlessbeatz4015]

hey travis could you could you please answer this if possible?? I own a residential house cleaning service. I am not subject to state tax, only federal. So would I use this same exact formula to figure my estimated taxes? which would only be federal.

[@callmejade5170]

So if you use the same math but change the scenario to a single filer, they would owe $24,053 with an income of $100,00?

[@lynej2011]

I really appreciate you for doing this video! My husband is retired and receives a pension and social security while I am self-employed. How do I estimate payments when I don't have clients yet? And do I have to access the IRS website and enter $0.00 for estimated payments quarterly until then? tfs"

[@ginesrodriguez8570]

Great Video! I am new to self employment (contract delivery) and have no other income. In your example you use $100,000. Is that the "adjusted gross income" amount? I am confused about whether the "$100,000 was after adjusting for car depreciation and other deductable expenses. I took the standand deduction as well as car depreciation and car loan interest. So is the $100,000 the AGI?

[@TravisSickle]

It’s actually before, this is your schedule C, assuming that’s how you file. The schedule C will contain those deductions/expenses. It’s better to do it at the business level and not itemize vs standard in most cases.

[@FawadZakai]

Hi, I recently formed an LLC entity on Aug 3rd 2021. My business comprised of day trading Futures Market under 1256 IRS form guidelines. Could you assist me if i need to pay my estimated taxes quarterly? Thank you. I haven't started day trading yet. I'll start on Sep 3, 2021.

[@Mcdamn1026]

What if I grossed 47k with a w2 claiming 0. And self employed prob 25k net.

[@Chandler890]

What about state taxes?

[@JUSSBOMB]

Hi Travis, Much thanks for doing these videos. Quick question for you, what if your self employment income less the standard deduction is below 0? Do you not owe federal taxes? How does that affect the self employment tax? Thank you

[@TravisSickle]

No income, no federal tax or SE tax. But also, no social security contributions either (which is the SE tax).

[@JUSSBOMB]

@@TravisSickle thank you very much

[@mochen1022]

@@TravisSickle hi Travis, this is my first year doing doordash. I’ve made about $6000 before any deduction and I don’t plan on doing it anymore. According to your answer here; no income no federal tax, does it mean I DO NOT have to do anything? No quarterly payment, just file a return comes April 15 2022? Please clarify for me! Thank you!

[@dracojensei1141]

Well what if u don’t sell frequently online just do it has a side

[@TravisSickle]

Depends on how much.

[@TravisSickle]

There are min requirements

[@spearheadmusicservice]

Thanks

[@alter444]

Hi Travis, I have a question. I am working as a W-2 employee and my wife just started working as self-employed in the middle of November. So now it is quite confusing to us how to properly calculate her estimated tax before January 15th. It is straightforward to estimate her taxes for the next quarter, but we are not sure how to pay taxes for her past November and December income. Since we are filing taxes jointly, if we subtract standard deduction from her 1.5 month income , we will get negative number.

[@TravisSickle]

First year in business you don’t need to pay estimated. You can start next quarter and pay your estimated tax then if you want.

[@TravisSickle]

You could also increase your withholdings on your w2 income. The first page on the w4 calculator has a box for self employment income. So you could figure it all out there.

[@alter444]

@@TravisSickle Thank you for reply. How we will calculate her taxes for previous year in this case,? Do we pay them before due date January 15 or we will add her earnings during tax return process and don't need to pay anything before January 15?

[@cynthiapayne9906]

Great walk through, thanks!

[@Mr_Pancho]

How does a new business figure out what its AGI will be? I just opened my business and im trying to figure out how i should go about filling out the (self employed estimated tax work sheet) PLEASE HELP

[@TravisSickle]

You’re not required in first year. But you can still do estimates.

[@tinydancer325]

If I am a 1099 and my husband is a W2 when I’m calculating line 1 for the AGI, is this supposed to be my 1099 earnings only or do I include my husbands W2 salary as well? When I only use my earnings, the married filed jointly standard deduction is higher than my estimated earnings resulting in a negative number? But if I include his salary, he is already getting taxes taken out. I’m so confused.

[@TravisSickle]

Use the online estimator. Page 1 shows self employment income

[@78janjee]

Thank you very much. This is very helpful a lot and knowledgeable. I have a question. I just work self employment only 7 months because my regular job has been closed because Covid. Every tax year, I always file tax as "married filling joinly" with my husband who has full time job. In this case, I want to file Estimate Tax for my self employment job. Can I use Married Filling Joinly Rate and Married Standard Deduction to file estimate tax even my husband is not self employment? Thank you for your information. I really don't have knowledge about this. But after I watch your KZbin that help me a lot.

[@TravisSickle]

You can add both types of employment in the calculator. First page checkbox has self employment income then on next page you can add it. The difference is the SE tax.

[@torioriorio1998]

​@@TravisSickle This would be a great video idea! Especially after 2020 - the year of self-employment lol. I'm facing the same issue. I just finished my first year self-employed (in December) so I'll be waiting to file estimated taxes until Q1, but I really am not sure how to calculate this - whether or not I should be figuring my husband's income or his side of the deduction. My gut says no (because then it would be as if he is self-employed, too - which he is not), but I'm not sure how to file estimated taxes with a joint income - half of which is self-employed and half of which is through an employer and has withholdings. It's very confusing.

[@noahmungia5128]

I’m self employed barely last year. My 2020 taxes I showed a loss due to barely starting and start up cost. Do I still have to file this estimated taxes for 2021?

[@TravisSickle]

no, but it's smart to do it if you're now turning a profit.

[@vcotta2012]

Why is my tax guy telling me I need to pay 35% on my self employment income? Something wrong there?

[@TravisSickle]

I don't know. But let me know what he says. My guess is he's combining numbers as a total tax and you may be confused. But again, I don't know.

[@robnelms1418]

Very helpful. Do you have anything about someone self employed that earns random amounts throughout the year? I'm a photographer for real estate and each payment is based on the size of the house, and, of course, it's completely dependent on the market. I am also on dialysis, so do I qualify for disability?

[@TravisSickle]

You can pay quarterly and estimate it that way. The benefit of that is it forces you to estimate more often so you’ll stay on top of it.

[@robnelms1418]

@@TravisSickleThanks. So I just estimate per quarter using the online service?

[@TravisSickle]

@@robnelms1418I would use quickbooks online

[@robnelms1418]

@@TravisSickle I don't understand how quickbooks works. Do you have a video on it? It keeps asking me to connect my bank account, which I would rather not do. Isn't there a way to just enter the amount you made and your expenses?

[@TravisSickle]

I don’t right now. Maybe I’ll do a basic one in the future. A quick way to do it without qb is income minus expenses. What’s left is what’s taxed. Do estimates based on that amount.

[@OGBReacts]

Question: If I just started doing freelance/self employment this year, and I JUST found about estimated tax payments, which is now after the 1st "quarter" of payments, am I too late to start doing them?

[@yusufmusa316]

Where is the link to take u to it

[@juliesotelo216]

when "self employment" is used does this apply if you are an LLC?

[@TravisSickle]

yes

[@TravisSickle]

schedule C filers. S-corp can do it using w2.

[@juliesotelo216]

@@TravisSickle Thank you this video is BY FAR the best explanation that I have found

[@dracojensei1141]

But self employed always pay taxes if u selling for a gain

[@TravisSickle]

Not if you’re saving it. Not if you have deductions.

[@NurseLita3541]

😭😭

[@TravisSickle]

be happy.

[@NurseLita3541]

@@TravisSickle I get it. It make sense now 😂

[@Flippinginthecarolinas]

Looks like I am going to Jail. I am lost lol

[@elizabethtorres1205]

u lost me

[@TravisSickle]

Where?