Estimated Tax Payments 101

When you work for an employer for pay, the employer withholds taxes from your paycheck and remits those payments to the Internal Revenue Service (IRS). You receive a Form W2 at the end of the year to use for tax preparation, and the entire process is as painless as remitting your hard-earned money can be. If you’re an independent contractor, you don’t have an employer to withhold taxes from your paychecks and remit payments on your behalf. You are now your own employer and must remit your own payments.

But how do I make payments? How much? Who do I pay? Can I just pay when I file my taxes?

The questions surrounding tax payments for independent contractors are many, and a visit to the IRS website for answers rarely leaves anyone but a tax professional feeling confident about how to proceed. This online course breaks down estimated tax payments into understandable guidelines that will provide you more direction for managing your tax liability.

Section 1: Do I Have to Make Estimated Tax Payments?

Section 2: How Much Do I Have to Pay?

Section 3: What Is Self-Employment Tax and Why Do I Owe It?

Section 4: Estimating Federal Taxes Due

Section 5: When Are Payments Due?

Section 6: How to Pay Your Estimated Taxes

Section 7: Tips and Extras

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