Self-employed individuals unlike salaried employees do not have the luxury of withholding taxes. It is for this reason the self-employed individual would typically pay quarterly estimated tax payments on April 15, June 15, September 15, and January 15 of the following year. Keep in mind, that the estimated taxes are intended to cover three specific tax issues. The first is an estimate of income taxes, the second Social Security taxes and finally, the Medicare tax. The Social Security and Medicare tax alone represent a little more than 15% of net income as shown on your schedule C. This will always be in addition to any federal income tax due on your taxable income. Hope this helps and good luck.
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