Q1i = A/3
This is wrong. It should be
Q1i = A * 3 / 12
or
Q1i = A / 4
Now, to get back to self-employment tax. Self-employment tax is weird. It's a business tax. From the IRS perspective, any self-employed person is a business. So, take your income X
and divide by 1.0765 (6.2% Social Security and 1.45% Medicare). This gives your personal income. Now, to calculate the tax that you have to pay, multiply that by .153 (since you have to pay both the worker and employer shares of the tax).
So new calculation
Q1pi = Q1i / 1.0765
or they actually let you do
Q1pi = Q1i * .9235
which is better for you (smaller).
And your other calculations change apace.
Q1ft = (10% * 9275) + (15% * (37650-9275)) + (25% * (Q1pi-3750))
Q1se = (6.2% * Q1pi) + (1.45% * Q1pi) + (6.2% * Q1pi) + (1.45% * Q1pi)
And like I said, you can simplify Q1se
to
Q1se = Q1pi * .153
and your payment would be
payment1 = Q1ft + Q1se
Now, to get to the second quarter. Like I said, I'd calculate the income through the second quarter. So recalculate A
based on your new numbers and use that to calculate Q2i
.
Q2i = A * (3 + 3) / 12
or
Q2i = A / 2
Note that this includes income from both the first and second quarters. We'll reduce to just the second quarter later. This also has you paying for all of June even though you may not have been paid when you make the withholding payment. That's what they want you to do.
Q1ft = (10% * 9275) + (15% * (37650-9275)) + (25% * (Q1pi-3750))
Q1se = Q1pi * .153
But we aren't done yet. Your actual payment should be
payment2 = Q2ft - Q1ft + Q2se - Q1se
or
payment2 = Q2ft + Q2se - payment1
Because Q2ft
and Q2se
are what you owe for the year so far. Q1ft + Q1se
is what you've already paid. So you subtract those from what you need to pay in the second quarter. In future quarters, this would be
Q3i = A * 3 / 4
payment3 = Q3ft + Q3se - payment2 - payment1
Q4i = A
payment4 = Q4ft + Q4se - payment3 - payment2 - payment1
All that said, don't stress about it. As a practical matter, so long as you don't owe $1000 or more when you file your actual tax return, they aren't going to care. So just make sure that your total payments match by the payment you make January 15th.
I'm not going to try to calculate for the state. For one thing, I don't know if your state uses Q1i
or Q1pi
as its base. Different states may have different rules on that. If you can't figure it out, just use Q1i
, as that's the bigger one. Fix it when you file your annual return. The difference in withholding is going to be relatively small anyway, less than 1% of your income.