Paying estimated taxes as independent contractor

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heretic

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Question for the independent contractors among us. I graduated last May and have been working as an independent contractor since Sept. Do you have to pay estimated taxes on your earnings this year if you had an income of zero last year and paid no federal taxes?
 

KHE

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Question for the independent contractors among us. I graduated last May and have been working as an independent contractor since Sept. Do you have to pay estimated taxes on your earnings this year if you had an income of zero last year and paid no federal taxes?

An easy way to calculate your estimated taxes: Go to the IRS Web site, download form 1040-ES, “Estimated Tax for Individuals,” and complete the worksheet to figure out the minimum you must pay to avoid a penalty.
 

IamMDMBA

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Question for the independent contractors among us. I graduated last May and have been working as an independent contractor since Sept. Do you have to pay estimated taxes on your earnings this year if you had an income of zero last year and paid no federal taxes?
If you had no tax liability last year, you DO NOT have to pay estimated taxes this year.
 

Ryan_eyeball

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If you had no tax liability last year, you DO NOT have to pay estimated taxes this year.

Correct. I didn't have to pay any quarterly taxes until year two (state & federal). These can be steep though. Remember, do you have to account for state taxes too (not every state has income taxes i.e. Texas)? I'd put 30-35% aside for taxes.
 
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