General Question

pallen123's avatar

Do you pay estimated taxes as a freelancer?

Asked by pallen123 (1514points) July 18th, 2012

Do you pay state, federal, maybe county taxes as a freelancer and if so, do you find it hard to keep track of what you ought to pay and how much you’ve paid to whom? How do you keep track?

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6 Answers

bkcunningham's avatar

What do you do?

2davidc8's avatar

Yep. You must pay estimated taxes. 4 times a year. Our tax system is a pay-as-you-go system. If your earnings are irregular, some months high and some months low, you can base your estimated tax payments on last year’s taxes. You take what you paid last year in taxes and divide by 4. Then you make one payment by each deadline date.

Judi's avatar

Usually self employed people pay estimated quarterly taxes. We just pay what our CPA tells us to.

mowens's avatar

You pay whatever you want to pay. Then the IRS says “No, you pay this!” And you are all like “NOOOO”

IRS Bitchslap you and it is all k

The bad grammar was on purpose, I was laughing the whole time.

woodcutter's avatar

Keep records of every check you have received as payment as well as all expenses and give it all to your book keeper.

anartist's avatar

I skip them and pay the penalty at the end of the year because it is just too up and down. This year, if I am flush in Sept I might pay the last quarter just to decrease the bite in April. I don’t know if paying them for earlier quarters [if you’re flush] invites additional penalties if you lapse afterward. Anyone know? Or is that a Q for my accountant?

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