Quarterly Taxes Explained | How to Pay Estimated Taxes

[@sandstorm7476]

This is the first video I’ve found that clearly explains it. I’ve watched dozens. Thank you!

[@KeeperTax]

Thank you so much for watching! I'm so glad it was helpful

[@EstherKarwal]

I've never been happier than clicking on this email link in my inbox. Your explanation is crystal clear. Ty!

[@gregmadison556]

The first thing she should have mentioned is you have to pay quarterly if you owed more than $1000 in taxes the previous year. Also if you expect to owe more than $1000 in the current year.

[@KeeperTax]

That's true, Greg! Thanks for weighing in

[@GETDOWNCREZZY101]

So I don’t have to pay quarterly taxes as a single member LLC?

[@melissajones1228]

@@GETDOWNCREZZY101 I’d like to know too

[@camgalloway691]

How do you know if your expected to owe 1,000 or more on taxes? What determines that?

[@RedLittleChicken]

@@camgalloway691 book keeping. See how much your taxable profit is for every quarter. And can start making estimates. “QuickBooks self employed” did everything for me.

[@IAMASIA]

Thank you so much for this 🥺💕💕💕 I appreciate this more than you’ll ever know as a small KZbinr

[@jacobr9556]

But what about a fluctuating income?????? Then is more complicated to estimate quarterly tax payments. Does the app you mentioned helps with the annualized method?

[@joshuawt5091]

Can’t tell you what a positive impact this was for me I appreciate you!!!!!!!💙💪🏾✊🏾

[@megan_mackenzie]

Your calculator is the best. I struggled so much with the IRS worksheet. Thank you thank you 😭💗

[@KeeperTax]

Amazing! So glad it helped, Megan

[@kaylathomas6785]

You talked about Federal Quarterly Tax Payments, but what about State/Local Quarterly Tax Payments?? Also, if you put aside 30% for Federal taxes, does that cover the self-employment tax too? Is the State percentage on the total amount of profit, or after the 30% for the IRS is taken out? So many questions! Thanks!

[@KeeperTax]

Hi, Kayla! Some good questions here. Yes, if your state collects income taxes, you'll want to pay it on a quarterly basis as well. You can estimate how much you'll owe on quarterlies - federal and state - using our free calculator: www.keepertax.com/quarterly-tax-calculator The recommended 30% does include self-employment tax as well as federal income tax. And the state percentage is overall, on the total amount of profit!

[@Ladeliciadelinda]

@@KeeperTax I did the calculations using your calculator and it appears that My tax for State is too low . Is it possible that I owe Federal quarterly taxes but not State quarterly taxes? Or normally is both mutually exclusive? Thanks!

[@darlenelee7239]

Thank you for clearing up my concerns, I also subscribed to your channel.

[@KeeperTax]

So glad to hear it! Welcome to the channel, Darlene!

[@Cpre1111]

What about deductions? Do I need to pay the taxes on my profit at the rates BEFORE or AFTER the deductions I take? For example, gas mileage.

[@KeeperTax]

Hey, Courtney! Great question. You should be paying taxes on your profit after you take out any deductions, like for mileage. But in practice, lots of people end up paying taxes on their gross income. In that case, they'll get a refund from the IRS after they file their tax return for the year.

[@Cpre1111]

@@KeeperTax thanks for answering

[@lindasmith2742]

Thank you for making these videos! It was explained very clearly and I now have a game plan.

[@KeeperTax]

Thanks for watching, Linda!

[@zac7102]

can you apply estimated deductions like the standard, qbi, and biz expenses to quarterly’s or how does that work?

[@xiaofha]

If you federal, state, and self-employment quarter taxes, does the IRS Payment Portal let you pay for all of them in one place? Do you have to make state payments separately?

[@ari.b1987]

What if you file joint with someone who normally gets a refund? We got back a small amount last year so im not sure what my obligation would be on a quarterly basis.

[@42utubegal]

This was great! Thank you. I was able to relax and take it all in, instead of being anxious and confused.

[@KeeperTax]

So glad to hear it, Michol!

[@ericaflorida1515]

What a reemployment tax report because they sent me that if I cancel would that effect my LLC

[@Fefe111]

This was very helpful information for self employed people. Thank you! I have a question, instead of paying quarterly on the IRS website or keeper tax, is it possible to pay monthly?

[@KeeperTax]

Great question! You can pay monthly - some people prefer to do that as a way to stay on top of things!

[@Fefe111]

@@KeeperTax thank you so much!

[@haley.canter]

You explained this so clearly and helpfully! Thank you xx

[@KeeperTax]

Thanks for watching, Haley!

[@kpk1014]

@@KeeperTax I was wondering about estimated quarterly tax payments for the IRS in regard to traditional IRA withdrawals. I'm 61 years old. I had no taxable income last year. I am single. I'm about to withdraw $107,050 from my IRA. I'm going to withdraw it in Late July maybe early August. I'm using the money towards the purchase of a house. I did own a house just weeks ago, but my former husband received the house in our divorce settlement. I understand the tax on that will be $34,647.50. My question is can I wait until the new year to pay the tax, or do I have to do quarterly or estimated tax payments, which I guess are the same thing from my understanding? If I do have to do quarterly or estimated taxes I was thinking of waiting until around January 11th, 2023 to pay it if the penalty and interest is less than what the taxes would be on the additional funds I would need to withdraw from my IRA to cover the taxes. TY

[@estanley46]

This is so helpful. I just downloaded the app!

[@BlackCatBritt]

Hi. If I have a full time w-2 job, but I just got a part time 1099 side gig, how do I figure out my estimated taxes? Obv I already pay on the w-2 income, so is the income amt I put into the 1040 ES JUST the self employment income? Or is it the full amt of the full time + part time income?

[@vanessaD86]

Thank you for this video. It helped me understand alot better.

[@KeeperTax]

Thank you for watching!

[@dance-chid98]

Hi can I pay yearly instead of quarterly? With my self employment tax so I can just do it all at the same time ? Thanks so much in advance ❤

[@KeeperTax]

Hi! If you expect to owe $1000 or more in taxes for a given year, you'll likely have to pay quarterly taxes, unfortunately. Keeper does have an estimated quarterly tax calculator to help you out! www.keepertax.com/quarterly-tax-calculator

[@kindree5414]

Hello, I am filling out a CSU application for college and it is asking me to input my Parents' adjusted gross income (AGI) for 2022 and my Parents' untaxed income and benefits for 2022. I know the AGI can be found on line 11 of the 1040 form on the 2022 Individual Tax Return, but I want to confirm where I can find the amount for the untaxed income and benefits? Is it line 2a where it says “Tax-exempt interest” or is it line 2b where it says “Taxable interest”? Line 2a is blank, but line 2b has an amount. Which one would I put? Thank you!

[@Lisa-io9ux]

Thank you so much for what you do!!!! Can you give some info on how to calculate quarterly estimates for 1099 commission workers who can't estimate their yearly income? And what happens w quarterly taxes if I say make a ridiculous amount or nothing at all for a few months?

[@KeeperTax]

Hi Lisa! Great question. You'll still have to make estimated payments if you expect to owe $1000 or more for the tax year, but the IRS gives a 10% buffer to quarterly filers in case you're slightly off in that estimation. That said, it's safer to slightly overestimate than to underestimate. If you overpay on your quarterly tax payments, you'll get that extra money back as a tax refund.

[@billykelly5987]

Do I need to use a software to calculate 1040ES ? I paid my annual Tax of $1051, but IRS sent me a letter that I have to pay Late estimates tax penalties of $59.80. Do I just have to pay this late penalties and done ✅ or is there anything else to pay or do ? Waiting your feedback. Thank you 🙏

[@KeeperTax]

Hi there! You don't necessarily need to use a software to calculate your quarterly estimated taxes. In fact, you can use Form 1040-ES itself to do this calculation! Software or a calculator can make it easier to estimate what your quarterly tax payments should be, though - there's a lot less manual math! For example, we offer this quarterly tax calculator to help you plan out your payments: www.keepertax.com/quarterly-tax-calculator If you pay those late penalties, you should be all squared up on those tax payments - and you can turn your attention to your 2023 taxes.

[@suefuller3014]

thank you!!! You did an amazing job commuicating.

[@KeeperTax]

Thanks, Sue!

[@finalgirljess_]

For late penalties do we pay those in the next estimated tax date or are those paid for separately? I'm late on two dates, the one for June 15 and the one for September 15. I'm ready to pay now and wanted to know if I should add my penalties now with my overall total? Please help!!! I'm soo confused

[@KeeperTax]

Good question, Jessica! Those penalties will actually be calculated when you file your regular 1040 tax return. You'll have the option to pay them then (or put part of your refund towards covering them, if you get one). But you don't have to. If you don't pay, the IRS will send you a penalty letter after you file.

[@LaCasaAcademy]

The IRS can calculate the penalty for you when you file your return in April, but if your income was uneven, you can potentially reduce your penalty by filing Form 2210 and Schedule AI. That way, you can calculate the exact penalty you incurred for each period instead of assuming underpayment for the whole year. (if you do have uneven income and pay as you go instead of making four even payments, you're supposed to file these even if you didn't underpay, but a lot of people miss that part of the instructions in IRS Pub. 505)

[@dominant_male5605]

Ok when estimating my quarterly taxes. Do I input my income from Jan 15 to April 15. And pay that amount? Or do I have to put my yearly income. How do I calculate my deduxtions

[@KeeperTax]

You'll want to estimate it using your yearly income! For a more accurate estimate, you can also figure out your deductions by subtracting anything you spend on work from that yearly income.

[@dominant_male5605]

@@KeeperTax understandable. But this year isn't completed. So how may I deduct. Do I guess?

[@sisterkeisha]

Question I do work part time, I just received my llc, so when I start selling, am I adding my personal income , and my business income, evening if I didn’t make that much or don’t make the same much all the time?

[@KeeperTax]

Hi, Keisha! Yeah, the thing about having business income is, you do start getting taxed on it as soon as you hit $400 in profit. That's a pretty low bar for having to pay taxes! And yes, you'll pay taxes on this at the same time as you file your personal tax return.

[@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?

[@KeeperTax]

Hi Paul! Thank you for your question. You can learn more about quarterly tax payments on the Keeper app. There, you’ll be able to chat with a tax assistant who can help. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/x8k4IzoTvkb. You can also email our support team at [e-mail]!

[@LaParisCandles]

how do i pay report quartly taxes for the states that don't have a state income tax? it's saying my calculations are long

[@KeeperTax]

Good question! In that case, you wouldn't owe quarterly taxes to your state, but you might still have to make federal quarterly payments to cover your federal income tax and self-employment tax. It's probably easiest to make these payments online, using IRS Direct Pay. That's the payment option that's lightest on paperwork. Here's an article where you can learn more: www.keepertax.com/posts/how-to-file-quarterly-taxes

[@silentghurl1000]

Sorry, I'm completely new to this and I really don't want to mess it up, I have a question: What if the freelancing gig that you have is more unstable but you still make more than $1000 a year? For example, I assumed I will get $15,000 income for the year so I pay tax quarterly to that but towards mid of the year I realized I'm about to make more than I estimated. Is there a way to change that estimated income and how do I come about paying the extra I owe? Do I use the calculator again?

[@KeeperTax]

Hi Aly! Great question. Yes, we'd suggest recalculating your estimated income and taxes based on your current projections. Then, catch yourself up with your next quarterly payment!

[@phillipecurvelano679]

Thanks for explain it so clearly 😀

[@ailanijae]

New subscriber here ! 👋🏾. Thanks so much for this video.

[@KeeperTax]

Thanks for watching, Janae!

[@carmenc6741]

So this is so that at the end of the year when you file your taxes you don’t have a huge bill??

[@KeeperTax]

Yep, you get it, Carmen! Quarterly taxes are basically a way for self-employed people to spread out their taxes so they don't get hit with it all at once

[@beckel8252]

Omg SUBSCRIBED! you made this so easy to understand! I just calculated my amount with John the freelancer's example! 💖 I have two questions! 1. I became a FT freelancer in July & was unaware of the estimated tax payments & missed the September payment (im expecting a penalty for that.) I am planning to make the Jan 15th payment and wondering if i should be paying more since i missed the September payment? 2. Is the 1040-es form mandatory to fill out prior to making the estimated tax payment? or can we skip that 1040-es form & go straight to making the payment? Thank you!

[@KeeperTax]

Hi, Becke! Great questions. Since you missed the September deadline, it makes sense to pay more in January to make up for it. The longer you wait, the more penalties you might be on the hook for! As for your second questions, you don't actually need to fill out Form 1040-ES if you're paying online - say, through IRS Direct Pay or EFTPS! You'll just need to mail it in if you decide to pay by check. You can learn more in this article on filing quarterly taxes: www.keepertax.com/posts/how-to-file-quarterly-taxes Congrats on taking the plunge into freelancing! Best of luck with your work going forward :)

[@bobbys2643]

So does this mean if you only have a little bit of income the previous year or “starting fresh” in a new year you don’t pay quarterly taxes the first year?

[@KeeperTax]

Another great question, Bobby! It's true - if don't earn a lot of freelance or independent income in a given year, you might not need to pay quarterly taxes at all. To find out if you're on the hook for them, you can use this calculator: www.keepertax.com/quarterly-tax-calculator

[@outbacklife2025]

so i made 12,000 on uber but i my car payments and insurance were 5000 and gas 3000 for the year I just owe 4000 than in tax income around 400?

[@KeeperTax]

Good question! If you drive the same car for Uber that you use for personal errands, you probably won't be able to deduct the full amount of what you paid for gas, insurance, and so on. You'll need to find your business-use percentage - the percentage of the time you drove for work out of all the driving that you did. You'll multiply this by your expenses. So, for example, if you spent $3,000 on gas for the year, and 50% of your driving was for Uber, you'll actually get a $1,500 write-off for gas - not the full $3,000. As far as car payments go, only the interest part of that is actually deductible! You can write off the rest through depreciation, which you can read more about here: www.keepertax.com/posts/car-depreciation-tax

[@Debber0401]

UGH!! I wish I’d have seen your video in the beginning of the year! I started a new job in the beginning of January this year and will get a 1099 at the end of the year for my taxes. I have been putting every 3rd check in a separate acct for my taxes, but was told by other co-workers that I just needed to pay once instead of quarterly. Now I’m worried about having to pay a penalty! Can I avoid this by going to the IRS and setting up quarterly payments now?

[@KeeperTax]

Great question! Depending on how much you made on 1099, you might be in the clear - you only have to pay quarterly if you expect to owe at least $1,000 in taxes. (You can estimate what you'll be on the hook for with this calculator: www.keepertax.com/quarterly-tax-calculator) As for the other part of your question - yes, you can minimize your penalties by kicking off quarterly payments as soon as you're able! (Assuming you ARE on the hook for them.) It's not uncommon for people to fall a little bit behind, but then catch up pretty quickly before the year's out. And the IRS likes to encourage getting back on track!

[@Jcuparts1]

good info but the music is distracting

[@KeeperTax]

That's good know. Would you recommend something smoother or no music at all?

[@pittsox]

So I am a first time taxpayer for this year and I work as a freelancer. I made a mistake by paying all 4 of my estimate taxes in a 2 month period in between (Twice in April 2023 and Twice in June 2023) since it my payment plan was for e-file and accidently paid with my card at the same time. At this point, am I done paying for the year, or do I need to continue to pay for the month of September 2023 and in January 2024? Will I get hit with a penalty fee and can I cancel for any upcoming payments for my estimated taxes?

[@KeeperTax]

Hi there! Unfortunately, there's a possibility that you'd be penalized for paying early - the IRS technically cares about the timing of your estimated quarterly tax payments. If you make your September and January payments as well, resulting in overpaying for the year, you'll get the extra back as a refund at tax time. On the Keeper app, you can chat with a tax assistant who might be able to help more with your specific situation. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/x8k4IzoTvkb

[@antb4681]

If I get a w2 and a 1099 at my other job. Don’t I have to file both taxes at the same time? I file my w2 per year so should I just wait a year to do my 1099 so I can do both at the same time?

[@KeeperTax]

Good question! That depends on whether you make enough on 1099 to owe at least $1,000 in taxes. (You can get a quick estimate using this tax calculator: www.irs.gov/publications/p463) If you DO end up expecting to owe at least $1,000 in taxes, you should make quarterly tax payments four times a year. (You'll still file your regular tax paperwork at the same time as you handle your W-2 taxes!) It works this way because your employer is automatically withholding taxes on your W-2 income and sending those to the IRS for you. But there's no withholding on your 1099 income. Quarterly tax payments are basically the equivalent of that for contractors and self-employed workers. The IRS set it up this way to make sure it still gets a little of your tax money throughout the year, instead of having to wait all the way till April for it!

[@christymack4342]

Hi! So this is my second year filing SE income as a small business owner (filing for tax year 2022).. In 2021 I received a refund and didn't owe, but I think with the return that I am about to file for 2022 that I will owe $1000+ for it & subsequently for next year. So if I start paying quarterly for 2023, is that first payment due April 15th also, along with the 2022 owed tax? Or is the FIRST quarterly payment for 2022 due on June 15th? And will I receive the underpayment penalty for the 2022 tax year also if the owed tax amount is over $1,000

[@KeeperTax]

Hi Christy! I recommend chatting with a tax assistant on the Keeper app. They'll be able to get you sorted! (There's a free trial, so you can see if it works for you.) Get started here: keeper.tax/e/NbzcogS9Skb

[@169Aquarius]

I have a question my quarterly money I made was $22000 between Jan 15 to April 15 how do I calculate this .

[@KeeperTax]

You can estimate your quarterly tax bill with this calculator! www.keepertax.com/quarterly-tax-calculator Unfortunately, quarterly taxes require you to estimate your income for the entire year, even though for lots of freelancers, contractors, and business owners, your income can really fluctuate from month to month. To get around this, you can treat your January-to-April income as representative and just multiply it by three to estimate your income from the entire year. Or, if that was an unusual season for you, you can just use last year's annual income

[@karon2235]

When its time to pay your quarterly taxes do it have to be paid in full on June 15th?

[@KeeperTax]

Hi, Karon! You can use this calculator to estimate how much you should pay for the June 15th deadline: www.keepertax.com/quarterly-tax-calculator If you can't pay the full estimated amount, a partial payment is better than no payment! It'll help you pay less in penalties

[@simmssherry176]

Thank you so much for this video, is it too late to file for April tax?? I have a new business, self-employed and I’m just trying to understand the whole tax thing!!!

[@KeeperTax]

Hi, Sheryl! You can - and should - still file even if you missed the tax deadline! The sooner you get it in, the more you'll save yourself in penalties. (They increase with each month you wait!) If you'd like to learn more about filing after the deadline, we've got an article right here: www.keepertax.com/posts/what-happens-if-i-miss-tax-deadline

[@ThisIsHarderThanIThought]

so inputting my net monthly income in your calculater with or without entering any other write-offs/deductions for the first month (jan 2022), it will calculate my estimated taxes and i should be good to go and will have no issues when paying in april 15, 2022 what the calculater calculated? i believe this calculator already takes out the standard deduction, but does it also take out the 15% self employment tax? or should i wait and combine my jan/feb/mar monthly net total and divide by three, then input that number in the calculater to get my quarterly estimated tax to be due april 15, 2022? either way, this is the easiest quarterly tax info ive seen in youtube...and ive seen over dozens and dozens of them. btw, after having done paid all four quarterly taxes...do we get a refund for that tax year like a regular W2 worker?

[@danalivingabroad]

Hi! Did you ever figure out the answer to your question? I am also wondering if I need to make any other deductions apart from what was put in the calculator

[@danalivingabroad]

the refund part I know is a yes. You will get that if you overpaid - or you can have them credit it to your next years taxes

[@KeeperTax]

Hello! So sorry your (really good!) questions got left hanging for so long. The answer is that yes, the calculator accounts for the 15.3% self-employment tax. The tax itself is factored into your tax burden, and the deductible half of it - which represents the employer's share of FICA tax, as paid by a self-employed person - is taken out of your estimated income tax. As for the second part of your question, Dana is absolutely right! You'll get a refund if you end up overpaying on quarterly taxes. (Not super uncommon, given how hard it can be for freelancers to estimate their total income for the year as they go!) In terms of the deductions you'll want to take to make the calculator's estimates as accurate as possible, you should remove your business expenses if you can! In other words, put in your net income instead of your gross if you can reasonably estimate it.

[@digitalcamaraderie5685]

Will I be fined or penalty for not paying quarterly. Instead I pay in November before end of year

[@KeeperTax]

If you don't pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return. More info on that can be found here: www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

[@vanessat.pittman5340]

So if I’m just starting my job this year in 2022, all I have to do is put the money aside, do my calculations and then pay the taxes quarterly from the income starting in 2023?

[@danalivingabroad]

no, if you are an Independent Contractor you need to start paying quarterly taxes now on the money you make in 2022

[@KeeperTax]

We love that we have a way to talk taxes and spread the good news! ✨

[@austinbranion8699]

My business is in its first year and, sadly, my business losses way exceed my business income. Do I still need to let the IRS know about this on a quarterly basis?

[@KeeperTax]

Great question, Austin! The good news is, you don't. You're only expected to deal with quarterly taxes if you anticipate owing the IRS at least $1,000, which requires making a profit. Congrats on getting your business off the ground - that'll be you before you know it!

[@austinbranion8699]

@@KeeperTax thank you, Keeper Tax social media manager / tax expert-you’re doing a great job and, on a human note, I appreciate the encouragement 🥲 I just downloaded the app thanks to this content and your nice reply! This is a great way to build trust with potential customers. Really appreciate all the wonderful content on this channel that provides information that has been so elusive or inaccessible elsewhere

[@444desertrose]

So good -thank you! ☺️

[@dbbias1760]

Thank you 👍💯

[@chicagotruckerlifeforlife5570]

With This App Do I Really Need a CPA…?

[@KeeperTax]

Great question! For sole proprietors, the answer is no - the app can absolutely handle your taxes, and it'll cost you a lot less than an accountant. It's designed around the needs of Schedule C filers! Because we believe in honesty, I'll also tell you when you probably should get a CPA! If you're operating a partnership, S corp, or C corp then the app can't currently file for you. And in the case of a corporation, you should work with an accountant. You can learn more in our article on when you can handle your own business taxes and when you'll need an accountant! www.keepertax.com/posts/can-i-file-my-own-business-taxes

[@Forever_Standing]

Thank you so much

[@jdworkz]

yesss Queen

[@dopeindi_mafia]

gorgeous

[@digitalcamaraderie5685]

Will I be fined or penalty for not paying quarterly. Instead I pay in November before end of year

[@KeeperTax]

You'll only be fined if you end up owing more than $1,000 in taxes! If so, it definitely makes sense to pay as soon as you can - like you mention doing with your personal deadline in November. That's because penalties increase with every month you're late to pay, although they're capped at $25 of your tax due!

[@pongop]

Thank you!!!