Set Aside This Quarter
$0
Based on your annualized income
Enter expected annual income from each source. The calculator annualizes and divides by 4.
Contributing to a SEP IRA reduces your taxable income and builds retirement savings.
If you expect to owe $1,000+ in taxes for the year from self-employment income, yes. If you don't, you risk an underpayment penalty (currently ~8% annualized interest on what you should have paid).
15.3% on net self-employment income: 12.4% for Social Security (on first $168,600 in 2026) and 2.9% for Medicare (no cap). You can deduct half of SE tax from your income tax calculation. It's the "employer + employee" share of payroll taxes that W-2 workers split with their employer.
Common ones people forget: mileage ($0.70/mile in 2026), professional development, business meals (50%), retirement contributions (SEP IRA: up to 25% of net earnings), phone (business %), shipping/postage, and platform fees (Etsy, TikTok Shop fees are deductible).
IRS Direct Pay (free, links to your bank account), EFTPS (Electronic Federal Tax Payment System), or mail a check with Form 1040-ES. Most people use Direct Pay (it takes 5 minutes). State taxes are paid separately through your state's tax portal.
Your W-2 withholding covers taxes on that income. This calculator is for the ADDITIONAL self-employment income that has no withholding. You only need to make quarterly payments on the self-employment portion.
You'll get the excess back as a tax refund when you file your annual return. Overpaying quarterly is better than underpaying. Underpayment triggers penalties, overpayment just means an interest-free loan to the IRS.