Question

1099 Income

Forum|Forum|2 years ago
August 30, 2023
1 reply
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Is there a minimum amount I need to make in order to pay quarterly taxes on my 1099 income, or can I just pay the taxes on the income annually? I have a secondary income that does not have regular pay periods or amounts, so I am never sure how much tax to pay or when.

Ask the Experts - Self-Employed - Aug 2023

K

Katherine S 63

Great question!!

If you have a W2 job that withholds Federal and state taxes for you, then it is best to make sure your W4 is withholding enough for your 1099 NEC income as well.

Here are my favorite Self Employment links:

Self employment tax

Self employment tax hub with calculator

Self Employment income and expenses

The Self employment tax hub with calculator link is nice to see how much you need to be withholding.

You can also get some estimates on how much you will owe by using one or both of these links.

Here are my two favorite links for tax estimator. Remember that they do not save so they will time out.

IRS Tax estimator

Taxcaster

You can use these throughout the year to see if you are owing. What I would suggest is doing a tax estimator to see if you are going to owe anything for 2023. If you are going to, then change your W4 again and add a bit more to cover that amount due. This will go on line 4 c of the W4 (extra withholdings). If you are not able to withhold from a W2 employer, then you can use this to estimate your amount that you will owe and then send in estimated tax payments.

You can do this by setting up an account with the IRS and state and make payments online. You can also mail your payments to the IRS or state.

I hope you have found this helpful.

Katie S.

Katherine S 63