Question

Quarterly Tax payments

Forum|Forum|2 years ago
August 30, 2023
1 reply
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Currently I get a W2 and make above $100000 a year. My wife does all 1099 work and currently makes around $25000 a year. Based on those numbers, do we need to set up quarterly payments?

Ask the Experts - Self-Employed - Aug 2023

Laura_CPA

Hi Pmejer,

Happy to help answer your question! If your spouse has not made any estimated tax payments and assuming the $25,000 is net profit, she will have to pay self-employment tax and ordinary taxes. Please use our Tax Calculator to estimate the tax liability: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Usually, if you believe that you will owe $1,000 to the IRS, they require estimated tax payments. The Tax calculator should help determine that. If you owe, you can still make a 3rd and a 4th quarter estimate payment, by 9/15/23 and 1/16/24, respectively. Note: these payments will be picked up on your tax return to offset your tax liability.

More on estimated tax payments, please see: https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Cheers,

Laura

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