Hi Benedics14!
Great question! And fantastic job of thinking ahead about how being self-employed will impact your tax return next year!
25% is a good ball-park estimate because it includes not only any income tax you will pay on your self-employed earnings but also the FICA (Medicare & Social Security taxes), which amounts to roughly 15% of your NET earnings (business income minus business expenses). To get a more accurate estimate, I recommend using the TurboTax Estimated Tax Calculator where you can input detailed information about any other items that may impact your estimated tax calculation. You may simply log into your account and click on the Live Help TurboTax guy in the lower right-hand corner to get assistance with one of our Wxperts to get you started.
Quarterly payments are due 4/15, 6/15, 9/15 of 2021, and 1/18/22 this year. So if you've missed the first two payments, you could divide your estimated income tax on your booth rental net earnings over the final two payment deadlines 9/15/21 and 1/18/22.
You can make payments directly to the IRS on the IRS website. Or if you use the TurboTax Estimated Tax Calculator, it will generate 1040-ES (estimated tax payment vouchers) for you that you may use to mail into the IRS.
For everything you need to know about Estimated Tax Payments, please visit this TurboTax link.
Thanks,
Akil C.
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