when do i pay taxes and how much

by Matt
(Janesville, WI)

I just started my business snowplowing. I will probably make around $2000.00 between now and March. How do I pay taxes, four times a year or just at tax time? Also I am general contractor but take direction from another person who owns his own snowplowing business and brokers the work out. Do I have to pay the SE tax or not?

Answer

Everyone is required to pay quarterly estimated taxes.

As a W-2 employee, your employer withholds taxes from your paycheck and pays the quarterly estimated taxes on your behalf.

If you do not have anyone withholding taxes and paying on your behalf, you will need to do so yourself.

You can determine your estimated tax liability by working through form 1040-ES from the IRS.

You can also use software such as TurboTax Online which will help determine your final and estimated tax liability.