# I'm newly self employeed: how much tax should I be sending quarterly to the IRS? **URL:** \ **Category:** Factual Questions\ **Created:** [August 7, 2009, 8:06am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612 "2009-08-07T08:06:09Z")\ **Posts on this page:** 15\ **Page:** 3
**Author:** ![zeno](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zeno/32/15040_2.png) [@zeno](https://boards.straightdope.com/u/zeno)\ **Post date:** [August 9, 2009, 12:10am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/41 "2009-08-09T00:10:41Z")
OK perhaps i should have included more information. I am working at home for myself, no employees. I work fora company that does not take out taxes. I sent 1000 in april. I missed the july deadline, but i will be sending $5000 this week\> I will talk to an accountant this wee. ---
**Author:** ![NinetyWt](https://avatars.discourse-cdn.com/v4/letter/n/cc9497/32.png) [@NinetyWt](https://boards.straightdope.com/u/NinetyWt)\ **Post date:** [August 9, 2009, 1:30am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/42 "2009-08-09T01:30:26Z")
> [@Broomstick](#): > > It depends on what you use an accountant for. I don’t use one for my daily book keeping, I do that. I use him for my tax preparation and for additional consultation as needed. I may check into it after things start turning back around. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [August 9, 2009, 2:31am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/43 "2009-08-09T02:31:59Z")
Get an accountant. Now, if you get a good one, you can ask him to show you what to do, and then after a couple years, assuming your business stays about the same, you can do it yourself. Same with even just an itemized 1040 Taxpayer. At least get your 1st year done by a Pro. 1040A and 1040EZ- you should be able to do that yourselves. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [August 9, 2009, 2:33am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/44 "2009-08-09T02:33:31Z")
> [@Harmonious\_Discord](#): > > Unless the IRS changed, be ready to pay the same amount in next year if your income declined. They don’t care if you didn’t work that quarter. They’ll tell you it all straightens out at the end of the year. It makes having no work even worse. No, you don’t have to do this. You can pay less, if that’s what your Estimate comes out to, that’s why they are called Estimated Tax Payments. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [August 9, 2009, 2:39am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/45 "2009-08-09T02:39:04Z")
> [@Broomstick](#): > > Oh, good lord - yes, she probably should. The total taxes on $2k isn’t going to be huge, but if she doesn’t pay them the IRS _can_ impose fines, with interest, even on 2k. She also needs to be aware of potential business expense deductions, and the fact that she WILL need to pay self-employment tax. Once you get a 1099 (and she will, if she’s earning over 2k as an independent contractor) you can’t file 1040EZ anymore, even if that’s all you earn in a year. > > Going to see a live accountant to go over things BEFORE tax liabilities come up is a very, very good idea. This (paying estimated taxes) is a maybe. Depending on what the other income is. No penalty will be assessed if the total tax liability is less than $1000. So, if she can claim herself as a deduction, she might have no income tax and only owe $300-$400 in SE Taxes. If she can write a check for $300 with no pain later when she’s not working, then it’s no so bad. But yes, seeing a live Tax Pro is a good idea. Now, by “accountant” I mean a real Tax Pro- a CPA or an Enrolled Agent. ---
**Author:** ![Rucksinator](https://avatars.discourse-cdn.com/v4/letter/r/898d66/32.png) [@Rucksinator](https://boards.straightdope.com/u/Rucksinator)\ **Post date:** [August 9, 2009, 6:32am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/46 "2009-08-09T06:32:03Z")
> [@zeno](#): > > OK perhaps i should have included more information. I am working at home for myself, no employees. I work fora company that does not take out taxes. I sent 1000 in april. I missed the july deadline, but i will be sending $5000 this week\> I will talk to an accountant this wee. Q about sending money in periodically: Wouldn’t it make more sense to figure out what you should owe, invest it (like in a CD), collect the interest, and then pay at the end of the year? ---
**Author:** ![jayjay](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jayjay/32/6765_2.png) [@jayjay](https://boards.straightdope.com/u/jayjay)\ **Post date:** [August 9, 2009, 6:41am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/47 "2009-08-09T06:41:59Z")
> [@Rucksinator](#): > > Q about sending money in periodically: Wouldn’t it make more sense to figure out what you should owe, invest it (like in a CD), collect the interest, and then pay at the end of the year? Business taxes are due quarterly, I believe, not annually like personal taxes. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [August 9, 2009, 6:57am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/48 "2009-08-09T06:57:52Z")
> [@Rucksinator](#): > > Q about sending money in periodically: Wouldn’t it make more sense to figure out what you should owe, invest it (like in a CD), collect the interest, and then pay at the end of the year? That MIGHT be OK your first year, and it’s OK if you owe less than $1000. Otherwise, you might have to pay a Estimated Tax Penalty. Besides, a Money Market is paying less than 1% now.😛 ---
**Author:** ![Liberal](https://avatars.discourse-cdn.com/v4/letter/l/848f3c/32.png) [@Liberal](https://boards.straightdope.com/u/Liberal)\ **Post date:** [August 9, 2009, 7:07am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/49 "2009-08-09T07:07:56Z")
> [@zeno](#): > > OK perhaps i should have included more information. I am working at home for myself, no employees. I work fora company that does not take out taxes. I sent 1000 in april. I missed the july deadline, but i will be sending $5000 this week\> I will talk to an accountant this wee. Good. You won’t regret it. ETA: Talk to the accountant BEFORE you send the money. ---
**Author:** ![Liberal](https://avatars.discourse-cdn.com/v4/letter/l/848f3c/32.png) [@Liberal](https://boards.straightdope.com/u/Liberal)\ **Post date:** [August 9, 2009, 7:10am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/50 "2009-08-09T07:10:22Z")
> [@jayjay](#): > > Business taxes are due quarterly, I believe, not annually like personal taxes. Personal taxes also can (and should) be paid quarterly if you are not deducting enough on your W4. ---
**Author:** ![Broomstick](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/broomstick/32/246_2.png) [@Broomstick](https://boards.straightdope.com/u/Broomstick)\ **Post date:** [August 9, 2009, 11:10am UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/51 "2009-08-09T11:10:51Z")
When I worked in one state and lived in another at a corporate job (that is, not self-employed) I paid state taxes quarterly because the idiots in Payroll couldn’t comprehend how to make the withholding work, and after hearing horror stories from other people who worked/lived across the state line I said to hell with it, I’m not paying a penalty because some biddy is stubbornly ignorant. Most people don’t take the option, but you are able to do that. ---
**Author:** ![aldiboronti](https://avatars.discourse-cdn.com/v4/letter/a/9fc348/32.png) [@aldiboronti](https://boards.straightdope.com/u/aldiboronti)\ **Post date:** [August 9, 2009, 12:40pm UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/52 "2009-08-09T12:40:21Z")
> [@Frylock](#): > > At $40,000 a year? > > How cheap can you hire an accountant for? I’m pretty sure the money a good accountant could save would be ample to pay his fees as well as putting extra dough in the OP’s pocket. So (to the OP) **GET AN ACCOUNTANT!** I’m astonished that no one has suggested that already. 🙂 ---
**Author:** ![Frylock](https://avatars.discourse-cdn.com/v4/letter/f/ce7236/32.png) [@Frylock](https://boards.straightdope.com/u/Frylock)\ **Post date:** [August 9, 2009, 2:47pm UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/53 "2009-08-09T14:47:18Z")
> [@glee](#): > > (But I have no idea why you mention $40,000 a year. 😕 ) What follows is a quotation of the entire OP–every word of it: > [@](#): > > I make about $40k a year. . 😉 ---
**Author:** ![NinetyWt](https://avatars.discourse-cdn.com/v4/letter/n/cc9497/32.png) [@NinetyWt](https://boards.straightdope.com/u/NinetyWt)\ **Post date:** [August 9, 2009, 7:54pm UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/54 "2009-08-09T19:54:41Z")
> [@jayjay](#): > > Business taxes are due quarterly, I believe, not annually like personal taxes. If you are a sole proprietor, they are the same. Business tax = personal tax. The taxes are listed under your name & SSN (or in my case, my husband’s, since we’re married). ---
**Author:** ![glee](https://avatars.discourse-cdn.com/v4/letter/g/b5a626/32.png) [@glee](https://boards.straightdope.com/u/glee)\ **Post date:** [August 9, 2009, 9:30pm UTC](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612/55 "2009-08-09T21:30:01Z")
Your post read: [QUOTE=glee] Um, shouldn’t your accountant be able to sort you out? You do have an accountant? [/quote] > [@Frylock](#): > > At $40,000 a year? > How cheap can you hire an accountant for? This is ambigous - you make no reference to the original salary, but instead imply that an accountant costs $40,000 a year. This is why you should hire an accountant! 🙂 [Previous page](https://boards.straightdope.com/t/im-newly-self-employeed-how-much-tax-should-i-be-sending-quarterly-to-the-irs/505612.md?page=2)