---
title: Your First Year Self Employed: What to Know | TaxTruce
url: https://taxtruce.com/for/first-year-self-employed
updated: 2026-10-29
---

# Your first year self employed

Your first year has a tax trap. Here it is.

Updated October 8, 20262 sources[Fact checked](/editorial-standards)

The short answer

In your first year on your own, no one withholds your tax. Estimated payments are due four times a year, and self employment tax adds 15.3%.

**4**Estimated tax payments a year: April 15, June 15, Sept. 15 and Jan. 15.[Source: IRS: Estimated tax due dates](https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2)

You owe self employment tax once net earnings reach $400.

If you expect to owe $1,000 or more, you should pay estimated tax during the year.

Paying 100% of last year's tax through estimates can avoid the underpayment penalty, even in your first big year.

## Steps that help

* Open a separate account for tax money.
* Pay something every quarter.
* Use our self employment tax calculator.

## Help that may fit

[**Payment plan: Pay what you owe a little each month.**](/coverage/installment-agreement)[**Penalty relief: Ask the IRS to remove late filing or late payment penalties.**](/coverage/penalty-abatement)[**Unfiled returns: Catch up on old returns before the IRS files for you.**](/coverage/unfiled-tax-returns)

Results depend on your situation. Not every case qualifies.

## Common questions

Can I get help if I already owe?

Yes. A tax pro can look at payment plans, penalty relief and other options for your case. Results depend on your situation. Not every case qualifies.

## Sources

1. [IRS: Estimated tax due dates](https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2)
2. [IRS: Estimated taxes](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes)

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.