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-ry9np2 жыл бұрын
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!
@adventuresofhootandwootthe2873 жыл бұрын
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.
@saraziel11403 жыл бұрын
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 Жыл бұрын
Thank you very much explaining how to figure Estimated Tax Payment. You did a prodigious job.
@TravisSickle Жыл бұрын
Glad it was helpful!
@mrwilly41 Жыл бұрын
Dude....I can't begin to tell you how helpful this was to me!! Thanks, Travis.😊
@philipnorman93642 жыл бұрын
Saved me so much time trying to wade through this myself as a new business owner I can’t thank you enough!
@fromjaxflorida Жыл бұрын
I'm learning taxes and doing the course via online. I'm so lost. But your walk through helps clear the confusion.
@StephenCarlockVO3 жыл бұрын
Easily the best video on this topic I've seen. You're a life-saver for my business - thanks for the content!
@TareqAlbahri3 жыл бұрын
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!
@llyssahemin3 жыл бұрын
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!!!!
@desdes82002 жыл бұрын
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.
@magdalenagrooms89652 жыл бұрын
Thank you for using example numbers. This helped me a lot.
@elisagreenwald90623 жыл бұрын
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!!!
@CheddaThisABanger2 жыл бұрын
helped me alot thanks
@JacobEverett-qe4uu Жыл бұрын
Very helpful. Thank you.
@MsGrace-iw2xz2 жыл бұрын
Great work Travis! Thanks for the informative work and great breakdown in the material.
@krackerthanas22263 жыл бұрын
thank you so much! best video i've found
@akhilkumarraparthi81792 жыл бұрын
it's helped me thanks for your video .
@philipnorman93642 жыл бұрын
Wow fantastic video
@TravisSickle2 жыл бұрын
Thank you so much 😀
@mhess4272 жыл бұрын
Can someone explain how he started the sample formula by multiplying 100,000 by .9235?
@AlaskaFearfulTV Жыл бұрын
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 Жыл бұрын
maybe in the future.
@kellydukes63392 жыл бұрын
I wish you could help me with my taxes!!!
@austinyarbrough1842 жыл бұрын
Great video brother! very well done!
@gabirican48134 ай бұрын
Thanks!
@gabirican48133 ай бұрын
You are welcome! 👍
@sabastionmiller17263 жыл бұрын
Best video by far
@javieruribe60703 жыл бұрын
Very helpful, thank you.
@TravisSickle3 жыл бұрын
Glad it was helpful!
@poseyparks36933 жыл бұрын
Thank you so much! You really helped me.
@bruno_sanchuk3 жыл бұрын
How about schedule C? When should I subtract it ?
@drivera4533 жыл бұрын
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
@DesignBuildFixReview2 жыл бұрын
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.
@alibobobaba13373 жыл бұрын
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?
@stephenmurphy75012 жыл бұрын
Very helpful!
@texasRoofDoctor Жыл бұрын
Hello, where do you add the SE tax to the 1040?
@damienbosse2 жыл бұрын
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
@TravisSickle2 жыл бұрын
I do have a video on it.
@paulcali08 Жыл бұрын
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?
@MattDiamond3 жыл бұрын
Great video!
@JesseJamesSCO2 жыл бұрын
Do I have to pay quarterly if I only made $250 dollars first quarter? New Jersey
@benjiebarker Жыл бұрын
1:37 where do you get the .9235 ?
@juneharrison63242 жыл бұрын
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.
@Zip5972 жыл бұрын
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?
@TravisSickle2 жыл бұрын
Correct.
@CheddaThisABanger2 жыл бұрын
my net income below the standard deduction
@TravisSickle2 жыл бұрын
Still file.
@CheddaThisABanger2 жыл бұрын
@@TravisSickle thanks
@Mcgurkyyy1013 жыл бұрын
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?
@NeedJesusForever3 жыл бұрын
Thank you very much!
@SuperTrollin1013 жыл бұрын
ty for the gulls
@tashastravel59044 жыл бұрын
Helpful, thank you
@jeffdundas79132 жыл бұрын
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.
@CoachJenAnytime902 жыл бұрын
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
@TravisSickle2 жыл бұрын
I'm not completely following you. Explain again.
@bojiam48184 жыл бұрын
What calculator app are you using on your phone? Does the cares act 401k loan end this month? Keep the vids coming.
@TravisSickle4 жыл бұрын
10bii-calc-hd
@rkbest97833 жыл бұрын
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?
@inthedaaark3 жыл бұрын
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.
@TravisSickle3 жыл бұрын
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.
@frankiecarrrierivg033 жыл бұрын
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.
@headlessbeatz40153 жыл бұрын
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.
@callmejade51703 жыл бұрын
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?
@lynej20113 жыл бұрын
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"
@ginesrodriguez85703 жыл бұрын
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?
@TravisSickle3 жыл бұрын
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.
@FawadZakai3 жыл бұрын
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.
@Mcdamn10263 жыл бұрын
What if I grossed 47k with a w2 claiming 0. And self employed prob 25k net.
@Chandler8903 жыл бұрын
What about state taxes?
@JUSSBOMB3 жыл бұрын
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
@TravisSickle3 жыл бұрын
No income, no federal tax or SE tax. But also, no social security contributions either (which is the SE tax).
@JUSSBOMB3 жыл бұрын
@@TravisSickle thank you very much
@mochen10223 жыл бұрын
@@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!
@dracojensei11412 жыл бұрын
Well what if u don’t sell frequently online just do it has a side
@TravisSickle2 жыл бұрын
Depends on how much.
@TravisSickle2 жыл бұрын
There are min requirements
@spearheadmusicservice3 жыл бұрын
Thanks
@alter4443 жыл бұрын
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.
@TravisSickle3 жыл бұрын
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.
@TravisSickle3 жыл бұрын
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.
@alter4443 жыл бұрын
@@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?
@cynthiapayne99063 жыл бұрын
Great walk through, thanks!
@Mr_Pancho3 жыл бұрын
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
@TravisSickle3 жыл бұрын
You’re not required in first year. But you can still do estimates.
@tinydancer3253 жыл бұрын
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.
@TravisSickle3 жыл бұрын
Use the online estimator. Page 1 shows self employment income
@78janjee3 жыл бұрын
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.
@TravisSickle3 жыл бұрын
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.
@torioriorio19983 жыл бұрын
@@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.
@noahmungia51283 жыл бұрын
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?
@TravisSickle3 жыл бұрын
no, but it's smart to do it if you're now turning a profit.
@vcotta2012 Жыл бұрын
Why is my tax guy telling me I need to pay 35% on my self employment income? Something wrong there?
@TravisSickle Жыл бұрын
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.
@robnelms14183 жыл бұрын
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?
@TravisSickle3 жыл бұрын
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.
@robnelms14183 жыл бұрын
@@TravisSickleThanks. So I just estimate per quarter using the online service?
@TravisSickle3 жыл бұрын
@@robnelms1418I would use quickbooks online
@robnelms14183 жыл бұрын
@@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?
@TravisSickle3 жыл бұрын
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.
@OGBReacts3 жыл бұрын
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?
@yusufmusa3163 жыл бұрын
Where is the link to take u to it
@juliesotelo2163 жыл бұрын
when "self employment" is used does this apply if you are an LLC?
@TravisSickle3 жыл бұрын
yes
@TravisSickle3 жыл бұрын
schedule C filers. S-corp can do it using w2.
@juliesotelo2163 жыл бұрын
@@TravisSickle Thank you this video is BY FAR the best explanation that I have found
@dracojensei11412 жыл бұрын
But self employed always pay taxes if u selling for a gain
@TravisSickle2 жыл бұрын
Not if you’re saving it. Not if you have deductions.