Quarterly taxes for physician independent contracting/moonlighting work

Forum|Forum|1 year ago
August 28, 2024
1 reply
0 views

Hello,

I am physician and perform independent contracting/moonlighting work in addition to my main employment role. Through my contracting work, I receive a 1099-NEC (not a W2), and as a result, have been recommended to file quarterly taxes. I am wondering how best to go about this process in terms of estimating the amount of quarterly taxes to be paid (given that the amount of contracting shifts I perform each quarter can vary).

Thank you!

Bsch4477

Employee

As a rule of thumb if you pay estimated tax of about 30% of your net self employment income you will be OK. Base the payment on your net income from the previous quarter.

joh04643Author

Thank you for your response. To clarify - this payment would only be based on my net self employment income (not including the income from the employer for which I receive a W2). How are quarters defined? And if quarterly estimates are incorrect (over or under paid), how is this addressed when filing annual taxes?

Bsch4477

Employee

https://www.irs.gov/faqs/estimated-tax

Your self employment income is taxed in two ways. It is added to your other income and taxed at your marginal tax rate and also 15.3% as self employment tax. Any under or over payment is reconciled on your tax return.