How Quarterly Tax Payments Work
When you earn money throughout the year, and withholdings are not taken from your check, you are responsible for paying taxes to the IRS on your own. Your obligation is to make quarterly tax payments before the 15th day of the month following the end of the quarter. Instead of getting a check that already reflects your tax obligations, you must physically pay your taxes each quarter. Your quarterly tax includes two types of payments: Self-employment taxes, representing the amount of Social Security and Medicare tax you owe (15.3% in total)Income taxes Quarterly taxes are usually paid by self-employed people, freelancers, and small business owners who have receipts for their work and business. You only have an obligation to pay quarterly taxes if you expect to owe at least $1,000…