 Re: Tax Payments as a Sole Proprietor
If you are in the USA then here is an answer for you.
There is a safe haven withholding law. If you withhold either via payroll deductions or estimated taxes 90% of what you owe or 100% of what you paid the previous year, you will not be penalized. The safe haven increases to 110% of what you paid the previous year if your agi is over $150K for MFJ.
If you have State income taxes, you will need to consider that as well.
Now that that is out of the way, If you do estimated, some of that will be applied to FICA. You will do the calculation at tax prep time. |