Calculate estimated tax payments for self-employment and 1099 income
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To avoid penalties, pay at least 100% of last year's tax liability OR 90% of this year's tax. If your AGI was over $150,000 last year, you need to pay 110% of last year's tax to be safe.
Keep detailed records of all business expenses. Every dollar deducted reduces both income tax and self-employment tax.
SEP-IRA allows up to 25% of net SE income (max $69,000 for 2024). Solo 401(k) may allow even more with employee contributions.
If you use part of your home exclusively for business, deduct a portion of rent/mortgage, utilities, and insurance.
Set calendar reminders 1 week before each deadline. Late payments incur penalties even if you file an extension.