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How do I file my taxes on Jan 15th? I have W2 income from January 2024-March 2024 then I quit my job. I have no income from April to October. Then 1099 income in Nov& Dec

Forum|Forum|1 year ago
January 6, 2025
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How di I estimate the taxes to pay on my Nov and Dec income.

Best answer by VolvoGirl

Send in about 20% oh your 1099 income. You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

X

xmasbaby0

Employee

When you prepare your tax return, the income you received is just going on as income received during 2024--it is not broken down by the months in which you received the income. You do not mention what kind of 1099 you will have---will it be a 1099NEC for self-employment income? Did you work as an independent contractor? If so, you will be paying self-employment tax for Social Security and Medicare. ALL of your income from every source will go on the same tax return, including the W-2 income and any income on any kind of 1099, etc. If you only had self-employment income for two months, you may not need to send in an estimated tax payment--you can just wait and see if you are going to get a refund or owe with your tax return. We cannot see any of your information and you have not shared your filing status, whether you have dependents, etc.

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

Try entering your information in the Tax Caster to get an estimate of whether you will owe.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

SELF EMPLOYMENT INCOME/“side jobs”

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

If you live in a state with a state income tax, you might need to make estimated payments to your state.

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

https://ttlc.intuit.com/community/business-taxes/discussion/self-employed-don-t-miss-these-tax-moves/00/3400413

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

D

drghadaelsayedAuthor

I appreciate your response greatly, thank you 🙂

To answer your questions: I work as an independent contractor - this is my 1099 income. I have no dependents and single.

My W2 will not be available until the end of January and this is making it a little difficult for me to make accurate estimation.

I'm just trying to get an idea of how much to pay the IRS for January and I understand it's an estimate but do not want to get a penalty for an inaccurate estimation.

Thanks a lot.

VolvoGirlAnswer

Employee

Send in about 20% oh your 1099 income. You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

DoninGA

Employee

If you have self-employment income of $400 or more then you have to report the SE income and expenses on Schedule C. The Schedule C is part of and included with your personal federal tax return, Form 1040.

The Net of your SE income will have SE taxes owed which is 15.3% of the Net SE income.

You will need to upgrade to the Premium online edition to report the SE income and expenses.

See this TurboTax support FAQ for Schedule C - https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-schedule-c/L5Fz3j5us_US_en_US?uid=m5l95onf

X

xmasbaby0

Employee

And...by the way----you do not have to file your tax return on January 15. The IRS is not accepting e-files until late January. If you are making an estimated payment for the last quarter of 2024 you have until 1-15 to make that payment, but you might not even need to make a payment by 1-15 until you see if you owe tax for 2024. If you owe less than $1000 there will not be an underpayment penalty.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**