Federal estimated taxes

Taxes → Federal shows an estimate of this year’s federal tax on your business profit: self-employment tax, income tax (after the standard deduction and the qualified business income deduction), and the Additional Medicare Tax when it applies. Enter your filing status and any other income in the profile so the estimate fits your situation.

Quarterly payments

The IRS expects self-employed people to pay during the year (Form 1040-ES), usually in April, June, September and January. RiverBooks suggests each quarter’s amount using the safe-harbor rules (paying based on last year’s tax, or on this year’s projected tax), and shows how much of each dollar you earn to set aside.

After you pay the IRS, record the payment in RiverBooks. It’s booked as an owner draw, since federal income tax is a personal tax, not a business expense.

At year end

The Schedule C worksheet lists your income and expenses by Schedule C line, with the accounts behind each figure. Download the year-end package for your tax preparer or tax software; it includes 1099-NEC details for contractors you paid.

These are estimates to plan with, not tax advice. A tax professional can help with anything unusual.