paying quarterly: separation of Fed and State?

Hey guys, I'm prepping to pay my first ever quarterly estimates. I live in New York, and am unsure how to separate the payments of Federal and State.

Anyone done this before?

  • Hi, Jamie, I've been a freelance copy editor for 5+ years now, and I dutifully send my federal estimated taxes each quarter. I add up my freelance earnings at the end of each quarters then take 20% of that amount and send it to the IRS. I used to live in Georgia and never owed state tax there at the end of the year, so I didn't send state quarterly payments. You can find information about where and when to send your federal estimated taxes on IRS.gov. For instance, the first quarter payment must be postmarked by next Monday, April 18. You can even print the necessary forms for each quarter (1040-ES) from the website. I just checked for you, and you will mail your Estimated Taxes to: Internal Revenue Service, P.O. Box 37007, Hartford, CT 006176-7007; check should be made out to "United States Treasury. I hope this helps!

  • Thanks Sue! So helpful. I'm digging through state now (which leads to more issues, ha!).

  • Hi Jaime! I'm a freelance user experience researcher and UI designer and I love working with clients who appreciate my impact on their apps, but despise busywork that doesn't pay (like figuring out taxes). Three other freelancer friends and I in San Francisco faced the exact problem you raised here: figuring out how much to set aside for taxes. We wanted an easy way to save for 1099 taxes, automatically from every paycheck... So just last week, after a year tirelessly working on our little baby, we finally released Track.tax. Sue's *stellar* advice is exactly how I did it before I put my taxes on autopilot (granted we had to build it ourselves). I'll reach out to the Freelancers Union team and offer up a team discount for Union members. Would love to hear if this tool is worth it for you and your freelancer friends. Check it out at http://track.tax and of course email me anytime: trent@iusetrack.com

  • Hi Jaime-

    My name is Andrew, and I am a CPA. The 1040-ES (link 1) should be used for the federal payments. The IT-2105 (the 2nd link) should be used for your state payments. If you have any other questions, let me know! You can reach me at 973-879-9111 or akabatchnick@gmail.com.

    https://www.irs.gov/pub/irs-pdf/f1040es.pdf
    https://www.tax.ny.gov/pdf/current_forms/it/it2...

  • Thanks, Andrews, I didn't know you could pay online (DUH!); however, I'll continue to pay via mail since it allows a couple days of the "float." Anyway, thanks for the info regarding the IRS link.

  • James, We live in New York, and there is a form you can use to determine how much you have to pay each quarter. Basically, you roughly estimate from your previous year's income where you'll be, adjusting accordingly. You can either pay the full year up front, then make adjustments if needed, or pay quarterly. Q1 payment is due Monday, so if you're paying online, you need to create the account and submit soon. Their online payment system is super easy to use if you've previously filed taxes in the state. Link: https://www.tax.ny.gov/online/ind.htm

  • This thread was so helpful! I'm just starting to learn the ropes on all of this too. @Trent: I'm going to try out Track! That tool sounds awesome. I'm in the Bay Area, too, and am actually hoping to connect with some other local freelancers just to shoot the poop on occasion. Lmk if you want to connect!

  • @Laura Happy to connect and learn more about what you're working on. I see you're an expert writer! Cool!

  • Thanks everyone for the words of wisdom! Happy Taxes!

  • Note that if you live in NYC, you have to pay state and city tax. Although you pay the estimated tax in one lump sum on the estimated tax voucher, you do put separate amounts on separate lines for city and state on the voucher. You need to keep track of how much you allocated to city and how much to state, since your checkbook or payment confirmation will only show one amount. When you do your taxes at the end of the year, the form will have lines where you designate how much you have paid to the city, and how much you have paid to the state, so they know how much to credit against the taxes owed. My first year I filled in and sent the vouchers and had no record of how it broke down, and it took me hours to figure it out. Welcome to the NY freelance world. We'll be waiting for you in the coffee shop at all times of day and night.

  • Hi, Jamie, I've been a freelance copy editor for 5+ years now, and I dutifully send my federal estimated taxes each quarter. I add up my freelance earnings at the end of each quarters then take 20% of that amount and send it to the IRS. I used to live in Georgia and never owed state tax there at the end of the year, so I didn't send state quarterly payments. You can find information about where and when to send your federal estimated taxes on IRS.gov. For instance, the first quarter payment must be postmarked by next Monday, April 18. You can even print the necessary forms for each quarter (1040-ES) from the website. I just checked for you, and you will mail your Estimated Taxes to: Internal Revenue Service, P.O. Box 37007, Hartford, CT 006176-7007; check should be made out to "United States Treasury. I hope this helps!

  • Thanks Sue! So helpful. I'm digging through state now (which leads to more issues, ha!).

  • Hi Jaime! I'm a freelance user experience researcher and UI designer and I love working with clients who appreciate my impact on their apps, but despise busywork that doesn't pay (like figuring out taxes). Three other freelancer friends and I in San Francisco faced the exact problem you raised here: figuring out how much to set aside for taxes. We wanted an easy way to save for 1099 taxes, automatically from every paycheck... So just last week, after a year tirelessly working on our little baby, we finally released Track.tax. Sue's *stellar* advice is exactly how I did it before I put my taxes on autopilot (granted we had to build it ourselves). I'll reach out to the Freelancers Union team and offer up a team discount for Union members. Would love to hear if this tool is worth it for you and your freelancer friends. Check it out at http://track.tax and of course email me anytime: trent@iusetrack.com

  • Hi Jaime-

    My name is Andrew, and I am a CPA. The 1040-ES (link 1) should be used for the federal payments. The IT-2105 (the 2nd link) should be used for your state payments. If you have any other questions, let me know! You can reach me at 973-879-9111 or akabatchnick@gmail.com.

    https://www.irs.gov/pub/irs-pdf/f1040es.pdf
    https://www.tax.ny.gov/pdf/current_forms/it/it2...

  • Thanks, Andrews, I didn't know you could pay online (DUH!); however, I'll continue to pay via mail since it allows a couple days of the "float." Anyway, thanks for the info regarding the IRS link.

  • James, We live in New York, and there is a form you can use to determine how much you have to pay each quarter. Basically, you roughly estimate from your previous year's income where you'll be, adjusting accordingly. You can either pay the full year up front, then make adjustments if needed, or pay quarterly. Q1 payment is due Monday, so if you're paying online, you need to create the account and submit soon. Their online payment system is super easy to use if you've previously filed taxes in the state. Link: https://www.tax.ny.gov/online/ind.htm

  • This thread was so helpful! I'm just starting to learn the ropes on all of this too. @Trent: I'm going to try out Track! That tool sounds awesome. I'm in the Bay Area, too, and am actually hoping to connect with some other local freelancers just to shoot the poop on occasion. Lmk if you want to connect!

  • @Laura Happy to connect and learn more about what you're working on. I see you're an expert writer! Cool!

  • Thanks everyone for the words of wisdom! Happy Taxes!

  • Note that if you live in NYC, you have to pay state and city tax. Although you pay the estimated tax in one lump sum on the estimated tax voucher, you do put separate amounts on separate lines for city and state on the voucher. You need to keep track of how much you allocated to city and how much to state, since your checkbook or payment confirmation will only show one amount. When you do your taxes at the end of the year, the form will have lines where you designate how much you have paid to the city, and how much you have paid to the state, so they know how much to credit against the taxes owed. My first year I filled in and sent the vouchers and had no record of how it broke down, and it took me hours to figure it out. Welcome to the NY freelance world. We'll be waiting for you in the coffee shop at all times of day and night.