How to compute quarterly estimated tax for a freelancer?

Hi,

I read a lot about estimated tax but I am still confused. Is it based on sales amount or net income? I read that it’s good to pay 25% to 30% each quarter but I am having trouble computing it based on sales or net income.

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Answer

  1. 12 Answers

    Hi there, the quarterly taxes is based on your estimated net income. Take a look at this section on estimated taxes in our tax guide for freelancers – https://askexper.com/ultimate-guide-accounting-bookkeeping-tax-freelancers/#Estimated_Tax_Filings_for_Freelancers

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