It depends on your individual situation, but if you expect to owe more than $1,000 in taxes, then yes! Here are some factors to consider:
1. Federal 2022 yearly taxes are due 4/18/23. What this means is that if you earned money last year (2022), you'll need to file with the IRS by 4/18/23. You won't need to file federal yearly taxes for your work with your company this year until 2024.
2. However, you'll still need to figure out if you will owe estimated quarterly taxes or not! As an independent contractor, the IRS will expect you to pay taxes quarterly if you expect to owe $1,000 or more in taxes for 2023.
-Quarterly taxes for Q1 of 2023 are due April 15th
- If you miss the Q1 deadline, you'll still be able to submit (the IRS charges a small penalty the longer you wait).
-Quarterly taxes for Q2 of 2023 are due June 15th
-Quarterly taxes for Q3 of 2023, are due September 15th
-Quarterly taxes for Q4 of 2023 are due January 15th, 2024.
-More quarterly tax info can be found here.
3. A good rule of thumb is – if you’re making a profit in your business, it's a good idea to pay quarterly taxes. In this case, if your self-employment income is higher than your business deductions, then you’re making a profit.
That being said, it’s possible that you’re already paying enough in taxes during the year. For example, if you have a full-time or part-time job where your taxes are already being withheld for you, and you tend to get a tax refund, then you may not need to pay quarterly taxes.
I would recommend filling out Form 1040-ES here to see if you expect to owe $1,000 or more in taxes. This should be a good indicator of whether or not you're expected to file quarterly!
Stride has whipped up a step-by-step guide for filling out Form 1040-ES here: How do I file estimated quarterly taxes?
If it turns out you do owe quarterly taxes, you can find instructions on how to get started here.
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