Estimated quarterly tax payments for self-employed

[shepherdsbush 0]

Hi people,

I arrived in the US one week ago on an IR-1 visa and am a freelance translator. I am in a fortunate postion as I could continue my translation work immediately on arrival here in the US. My question is; do I have to pay quarterly estimated tax payments as a self-employed person right away? Or do I wait until next year.

thanks in advance

shepherds bush

[I AM NOT THAT GUY 5,715]

Hi people,

I arrived in the US one week ago on an IR-1 visa and am a freelance translator. I am in a fortunate postion as I could continue my translation work immediately on arrival here in the US. My question is; do I have to pay quarterly estimated tax payments as a self-employed person right away? Or do I wait until next year.

thanks in advance

shepherds bush

The first quarterly payment is due April 17th. Taxes have to be prepaid, usually in equal payments. Non-resident aliens would use Form 1040-ES(NR). Others would use Form 1040-ES(OCR)

[shepherdsbush 0]

The first quarterly payment is due April 17th. Taxes have to be prepaid, usually in equal payments. Non-resident aliens would use Form 1040-ES(NR). Others would use Form 1040-ES(OCR)

Thanks for the reply!

I see the relevent form requires

a) Information from last years US tax return, and

b) A Social Security Number

I don't have either of these items (SSN has still not arrived, takes about a month from what I gather).

I rang the IRS but I was referred to 4 different people who just seemed to be entering my information into their computer after reading from their list ("are you a farmer or fisherman?", etc.) before saying that I needed to talk to someone else as the computer couldn't deal with my request. In the end I came back to the first person again!

[I AM NOT THAT GUY 5,715]

Thanks for the reply!

I see the relevent form requires

a) Information from last years US tax return, and

b) A Social Security Number

I don't have either of these items (SSN has still not arrived, takes about a month from what I gather).

I rang the IRS but I was referred to 4 different people who just seemed to be entering my information into their computer after reading from their list ("are you a farmer or fisherman?", etc.) before saying that I needed to talk to someone else as the computer couldn't deal with my request. In the end I came back to the first person again!

Welcome to the US bureaucratic runaround!

If you didn't have to pay estimated taxes the previous year, or didn't owe any income taxes from the previous years, you generally don't have to pay estimated taxes in the current year. So, they can't penalize you for not getting it right the first year. Expect an audit in the first couple of years, just so you and the IRS can come to an agreement on what is taxable, and what is deductible. Home office expenses, and vehicle expenses are big on their hit list.

My advice is to set plenty aside for taxes, and if you make the payments, you won't be so inclined to spend it and end up short next April. Don't forget the 15.3% for Social Security and Medicare taxes, on top of the income tax. That self-employment tax will probably end up being about two-thirds of your Federal taxes.

[shepherdsbush 0]

Welcome to the US bureaucratic runaround!

If you didn't have to pay estimated taxes the previous year, or didn't owe any income taxes from the previous years, you generally don't have to pay estimated taxes in the current year. So, they can't penalize you for not getting it right the first year. Expect an audit in the first couple of years, just so you and the IRS can come to an agreement on what is taxable, and what is deductible. Home office expenses, and vehicle expenses are big on their hit list.

My advice is to set plenty aside for taxes, and if you make the payments, you won't be so inclined to spend it and end up short next April. Don't forget the 15.3% for Social Security and Medicare taxes, on top of the income tax. That self-employment tax will probably end up being about two-thirds of your Federal taxes.

Thanks again for the reply!

I guess I'll go down the IRS office and simply ask for information. I reckon it is probably better to start out paying quarterly payments as at least I'll have some idea of what I have to pay early on and not get mashed by an unaffodable tax bill at the end of the year. As for home office expenses, these are really low for me (I work at home on the Internet with a laptop).

Now I just have to figure out whether to file as a dual status alien or married filing jointly...