Question

Left W-2 Job In March - Minimal Income From Contract Work

Forum|Forum|2 years ago
August 30, 2023
1 reply
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Hello,

Would I still need to submit a quarterly payment prior to the September 15th deadline if I left my W-2 job in March 2023 and have made less than $5,000 in income as a contractor so far this year?

Thank you!

Ask the Experts - Self-Employed - Aug 2023

JBedford

Hi, @Mprice25 , thanks for your question! The simplest thing to do is to make sure you're paying in 100% of your 2022 tax liability from Line 24 of your Form 1040 (110% if f you make over $75,000 as a single filer, or $150,000 if married filing jointly, in self-employment income.) That's a "safe harbor", which will keep the IRS from applying an Underpayment Penalty. If your withholding from your job was enough to cover that, then you should be good. If not, then I would make up the difference with a payment.

Hope this helps, please let me know if not!

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