Hi there, soniacgoldner.
Welcome to the QuickBooks Community. I'll share information on how QuickBooks Self-Employed tracks and calculate taxes.
Once you're self-employed, you seemingly need to pay federal self-employment taxes. These payments include your income, Social Security, and Medicare taxes for your self-employed work.
Since QBSE tracks your self-employed income and expenses, it calculates what you need to pay each quarter. With this, it's important to add all of your business income and expenses. Then, categorize them in QuickBooks. QBSE estimates federal tax payments also based on your self-employed income, deductions, predicted future income for the year, and tax profile.
Your estimated tax payments may look high for the first quarter. QuickBooks assumes your current profits will be similar for the next three quarters. Self-employed individuals, like you, also have to pay both halves of the Social Security and Medicare taxes. This could be the reason you're seeing 27% as your projected tax income and not the expected amount of 15.3%.
For additional information, you can click on this article: How QuickBooks Self-Employed tracks self-employment taxes.
Please refer to this article to view various information on how QBSE is designed to help you record your self-employed income and expenses, track mileage, and prepare your Schedule C: QuickBooks Self-Employed Overview.
You can drop your comments below if you have other concerns with taxes. If you have other questions for QuickBooks Self-Employed, please include them. I'm always here to help.
