Question

One time payment instead of quarterly self-employed taxes

Forum|Forum|2 years ago
August 30, 2023
1 reply
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I make $1,400 a year in self-employment income and I have a salary above the minimum tax-filing requirement from working for an employer. Can I pay one big lump sum to the IRS for my estimated taxes on the self-employment instead of doing it quarterly? Would I get a refund on the difference between my overpayment and actual taxes when I file the next spring?

Ask the Experts - Self-Employed - Aug 2023

carolineb

Hi! Yes and yes. You can make on lump sum payment to the IRS to cover your self employment tax liability, as long as it is in the first or second quarter. The IRS will still hit you with an underpayment penalty if you make money from Jan-Dec but wait until the last quarter to make the estimated payment. Any overpayment will be refunded when you file your tax return. Here is a very informative article that you can refer to for more information: Myths About Quarterly Taxes for the 1099 Tax Form

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