Thank you for this video ❤ I made my first payment "somewhere" and my accountant had to figure out where (it worked out fine). He made a video for me moving forward, but I'm definitely going to pass this onto others who are starting a similar business to mine. He's also agreed with your suggestions on making a separate account for "owner draw - equity" and paying out of your personal acct, which are other mistakes I've made. I'm looking forward to learning more
Yes Herberto - what Robert said! You only have to make a payment from your personal side since your business earnings roll up onto your personal account! Thanks Robert!
And what if previous year which is 2023 not yet availiable, and we have never submitted any declarations before that year because we have recently moved to the U.S?
Nice video! I paid a 2023 estimated tax by IRS Direct Pay. I got the email confirmation number. The amount I paid was deducted from my bank account. I looked the payment up online using the confirmation number and my SSN. Does the Payment Status of "Originated" mean the IRS acknowledges receipt of my payment or should I see some other Payment Status such as "confirmed" or "received" etc. This is the first time I have used an online payment method. Thanks.
Newbie here. So how does this work if you filed a personal return and a return for an LLC S-corp? Are we making estimated payments for the LLC and personal, or just the LLC?
Hi Clara, I am a new resident, since the beginning of 2022... I am a freelancer, I thought I didn't have to file any taxes until next year... and suddenly I saw that I was supposed to file quarterly... I'm freaking out. Am I in big trouble? Is this something it can be fixed?
When using the EFTPS site to pay estimated taxes on a sole-proprietor LLC, what form should we use in the dropdown menu? I heard that a single member LLC is considered a "disregarded entity", so is it possible to pay estimated taxes on the LLC using your own SS number instead of the EIN?
I am supposed to pay 15.3% social security/medicare on my earnings as an independent contractor. I cannot find information anywhere telling me how and where to pay. I sent it to the IRS last year, but according to a representative at SS, they aren't getting the money. Where am I supposed to by the SS/medicare?
You can pay as often as you like. We recommend saving money for quarterly tax payments in a separate savings account (maybe even earning some interest!), so that you are in control of the money for longer. But if you have a problem with spending the money when it's in your account, then maybe paying more often is a good strategy for you!
Does anyone know how to pay 1120-W estimated quarterly tax payments?. I don't see the exact option for each quarter. Is it go under Federal Deposit Tax?
Yes, you still owed taxes even if you got a refund - you received a refund because you OVERPAID on your taxes. So you need to estimate how much you are paying this year to see if you need to pay or not. It could be that your withholding from your W2 job is enough to cover your total tax liability!
A lot of people won't have the money saved if they wait until April. And technically taxes are a pay-as-you-go system. You should be paying taxes closer to when the income is actually earned if you are a small business owner. But you can do whatever you want - it's your call.
Thank you. The pay online option without creating an account was very helpful.
great!
Thank you for this video ❤ I made my first payment "somewhere" and my accountant had to figure out where (it worked out fine). He made a video for me moving forward, but I'm definitely going to pass this onto others who are starting a similar business to mine. He's also agreed with your suggestions on making a separate account for "owner draw - equity" and paying out of your personal acct, which are other mistakes I've made. I'm looking forward to learning more
Herberto, since the LLC’s income will be included on your 1040 the tax on its income is included on your 1040. Pay the tax on Form 1040-ES by June 15
Yes Herberto - what Robert said! You only have to make a payment from your personal side since your business earnings roll up onto your personal account! Thanks Robert!
And what if previous year which is 2023 not yet availiable, and we have never submitted any declarations before that year because we have recently moved to the U.S?
I think creating an account is the best route, no room for errors.
I agree. Also easy to find your payment history.
Nice video! I paid a 2023 estimated tax by IRS Direct Pay. I got the email confirmation number. The amount I paid was deducted from my bank account. I looked the payment up online using the confirmation number and my SSN. Does the Payment Status of "Originated" mean the IRS acknowledges receipt of my payment or should I see some other Payment Status such as "confirmed" or "received" etc. This is the first time I have used an online payment method. Thanks.
Newbie here. So how does this work if you filed a personal return and a return for an LLC S-corp? Are we making estimated payments for the LLC and personal, or just the LLC?
Heberto, did you ever get this question answered? I would love to know as well!
Hi Clara, I am a new resident, since the beginning of 2022... I am a freelancer, I thought I didn't have to file any taxes until next year... and suddenly I saw that I was supposed to file quarterly... I'm freaking out. Am I in big trouble? Is this something it can be fixed?
I gather it is the same for paying estimated taxes for the state
When using the EFTPS site to pay estimated taxes on a sole-proprietor LLC, what form should we use in the dropdown menu? I heard that a single member LLC is considered a "disregarded entity", so is it possible to pay estimated taxes on the LLC using your own SS number instead of the EIN?
Where do we file the 1040 ES when we make a payment, or is that not needed until the end of the year?
I am supposed to pay 15.3% social security/medicare on my earnings as an independent contractor. I cannot find information anywhere telling me how and where to pay. I sent it to the IRS last year, but according to a representative at SS, they aren't getting the money. Where am I supposed to by the SS/medicare?
As an independent contractor, am I able to use the IRS app or portal to pay my taxes every 2 weeks or only quarterly ?
You can pay as often as you like. We recommend saving money for quarterly tax payments in a separate savings account (maybe even earning some interest!), so that you are in control of the money for longer. But if you have a problem with spending the money when it's in your account, then maybe paying more often is a good strategy for you!
Does anyone know how to pay 1120-W estimated quarterly tax payments?. I don't see the exact option for each quarter. Is it go under Federal Deposit Tax?
Do I still pay estimated tax if I got a refund last year? I started being an independent contractor June of this year, plus have a W2 job as well.
Yes, you still owed taxes even if you got a refund - you received a refund because you OVERPAID on your taxes. So you need to estimate how much you are paying this year to see if you need to pay or not. It could be that your withholding from your W2 job is enough to cover your total tax liability!
Thanks!
Why would anyone pay their taxes early? This makes no sense. Just wait for April and pay all at once
A lot of people won't have the money saved if they wait until April. And technically taxes are a pay-as-you-go system. You should be paying taxes closer to when the income is actually earned if you are a small business owner. But you can do whatever you want - it's your call.
To avoid overpayment penalty possibly