Question

Went from W2 employee to 1099 Mid Year

Forum|Forum|2 years ago
August 30, 2023
1 reply
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I was a W2 employee up until June 1st. Since then, I have been on contract (1099) month to month. Will I get a penalty for not paying Q1 & Q2 estimates? I only owed $100 on my 2022 taxes. Since it's month to month, I'm not sure how long I'll be working there. Can I easily adjust my Q4 payment if I move back to a W2 employee?

Ask the Experts - Self-Employed - Aug 2023

V

VincentL

Your W-2 wages had taxes withheld by your employer.

You can make estimated taxes for the 1099 work at any time during the year. Remember, the schedule set by the IRS is a series of deadlines. You can always make a payment before a set date, and you can cover your entire liability in one payment if you want to. You don't have to divide up what you might owe into a series of four quarterly payments. So you can make the payments monthly if you chose based on the amount paid to you.

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