Short-term 1099 Contractor

Forum|Forum|1 year ago
August 28, 2024
2 replies
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I started 2024 as a W-2 employee, then transitioned to a 1099 contractor for only 2 1/2 months (5/15 thru 7/31). Now I'm back to being a W-2 employee. Should I pay an estimated quarterly tax for the 2.5 months of contract work? And if so, how can I determine how much? Thanks.

FranklinF

To make a Long Story Short, about 15.3% of your Self-Employment Earnings, but there is more.

You can have a more accurate calculation using a Tax Calculator where you can input the other circumstances surrounding your next year tax filing obligations.

Tax Calculator 2023

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claywallace

Yes, it would be advised to pay one quarterly estimated tax payment for September 15th based on the net earnings from your self employment (gross minus known deductible expenses) times 15.3% for SECA PLUS income tax based on the tax brackets below for 2024:

Tax Rate	For Single Filers	For Married Individuals Filing Joint Returns	For Heads of Households
10%	$0 to $11,600	$0 to $23,200	$0 to $16,550
12%	$11,600 to $47,150	$23,200 to $94,300	$16,550 to $63,100
22%	$47,150 to $100,525	$94,300 to $201,050	$63,100 to $100,500
24%	$100,525 to $191,950	$201,050 to $383,900	$100,500 to $191,950
32%	$191,950 to $243,725	$383,900 to $487,450	$191,950 to $243,700
35%	$243,725 to $609,350	$487,450 to $731,200	$243,700 to $609,350
37%	$609,350 or more	$731,200 or more	$609,350 or more

Conversely, if you want to cover the taxes that will be due for this one quarter via extra withholding via your employer, you have four more months to do so by withholding an additional dollar amount (based on the estimate above) for federal and additional income tax only for state.

Cheers!