Form 1099 is a statement used by clients to report payments of at least $600 to independent contractors. Generally, income taxes are not withheld from the payments, and it is the independent contractor’s responsibility to pay all taxes owed on the income. If you expect to owe more than $1,000 in tax on your self-employed income at the end of the year, The Internal Revenue Service requires you to make quarterly payments toward the debt. To estimate your quarterly tax payments, you must complete and file Form 1040-ES.
Prepare the Estimated Tax Worksheet on Form 1040-ES to estimate the tax that you will owe at the end of the tax year. If your bill is less than $1,000, or you have income tax withheld from another source that will cover some of the debt, you are not required to make quarterly payments.
Divide your estimated tax bill by four to determine the amount of your quarterly payments. For example, if the estimated tax bill for the year is $12,000, each of your quarterly payments is $3,000.
Enter your name, address and Social Security number on Payment Voucher 1. Make your check or money order payable to “United States Treasury. “
Mail the voucher and check or money order to the address listed on Form 1040-ES. Mail the remaining vouchers and payments to the IRS according to the schedule listed on the form.
- You can also create an account through the Electronic Federal Tax Payment System to make your quarterly payments online.
Angela M. Wheeland specializes in topics related to taxation, technology, gaming and criminal law. She has contributed to several websites and serves as the lead content editor for a construction-related website. Wheeland holds an Associate of Arts in accounting and criminal justice. She has owned and operated her own income tax-preparation business since 2006.