Question

Estimated Taxes for a new contract

Forum|Forum|2 years ago
August 30, 2023
1 reply
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I have been unemployed for all of 2023 and I have started a contract position (1099) at the beginning of August (NOT self-employed). I wiill owe more than $1000 by the end of the year. Do I still have to pay my estimated taxes this year? Do I have to pay the full amount by September 15 or just a quarter?

CatherineR

Hi Anip,

Congrads on getting employed for 2023!

Now you will need to make sure your estimated taxes are paid in by January 15th, 2024 since you will owe more than $1000. The estimated tax payments made now will avoid any potential penalties and interest for your 2023 tax return. Here is a great IRS resource to explain the estimated tax process:

IRS Pay as you go, so you won't owe

You can make the estimated tax payments securely on line at IRS.gov "Make a payment" button. Make sure you label them for estimated taxes 2023.

Good luck on the new job.

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