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In addition to your regular income tax you'll have to pay about 15% in sE taxes. Last year that extra burden came in the last quarter (after Sept 1) so,l presuming you were on salary befor and your income is about the same level now as when on salary, it would behoove you to use the annualized Income method to reduce the penalty for underpayment you will undoubetedly get. Any tax prep software will do this for you as you prepare your return. For this year (2008) your income and taxes will be much higher than last year (because of the 15% SE tax) so probably paying 1/4 of your 2007 taxes each quarter with a 1040ES will be your best bet.

If your salary was more than your SE pay rate the above may not be accurate, and paying 1/4 of last year's tax more than necessary. In that case using the Annualized Income method is the surest wasy to calculate the correct installments and avoid a penalty.

ed
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