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3 replies

May 29, 2024

It sounds like you are self employed and receive a 1099-NEC or 1099-Misc. You cannot make changes to a 1099 because it just shows the money you earned.  In this case you want to make quartlerly estimates to the IRS Estimated Taxes and depending on what state you live in you would go to the State DOR and search estimates. If you are emplyed by a company that issues a W-2 at the end of year you want to adjust your W4 5 reasons to adjust your W4 

 

PafuAuthor
May 29, 2024

I am retired and receive a pension and social security and every year I owe taxes to federal and state. What can I do specifically to not owe taxes? 

evelynm
May 29, 2024

In that case you are referring to the 1099R.   You can contact your administrator to withhold taxes accordingly for Federal and State.   For social security if you want to change your withholding, you'll need a Form W-4V from the Internal Revenue Service (IRS) https://www.irs.gov/forms-pubs/about-form-w-4-v.

Have an amazing day. Evelyn M (CPA 20+ years)I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer"
May 29, 2024

If you are having your income from 1099, it's your responsibilty to pay self employment taxes (Social security and Medicare) and you may have to pay income tax as well. While you can request the issuer of 1099 to withhold income taxes for you, mostly the issuers of 1099 don't withhold income taxes. To avoid owing taxes on your 1099 income at the time of tax filing, and also as per the IRS requirements, you should pay your taxes during the year also called as paying quarterly estimated taxes. This will also avoid you ending up paying interest/penalty later on.

 

To determine the amount  of estimated taxes you should pay every quarter, you can calcuate your annual taxes using this TurboTax Tool. Once you know your estimated annual tax liability you calculated using the tool (Income tax and Self employment tax) you can divide the estimated tax liability by 4 and pay tax to the IRS. You can adjust the amount of your tax liability in the subsequent quarters based on increase or decrease in your income during the year. You can pay the quarterly taxes to the IRS on the due dates provided in this IRS link.  You may send estimated tax payments with Form 1040-ES by mail, pay online, by phone or from your mobile device using the IRS2Go app. Visit Payments to view all payment options. When you file your Income Tax return, you may have a refund or you may have some tax laibility, this will be calculated based on your actual income and the taxes you already paid during the year. If you have a  tax liability, it may not be that big at the end of the year because of quartely payments you made to the IRS during the year.

 

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evelynm
May 29, 2024

Use our TurboTax tax calculator:  https://turbotax.intuit.com/tax-tools/calculators/w4/ which will generate your W-4 accordingly.   As far as the state calculations here is a link to the various state agencies:  https://quickbooks.intuit.com/learn-support/en-us/help-article/payroll-compliance/payroll-tax-compliance-links/L0H0Syx14_US_en_US.

 

If you are referring to 1099 (ie Self Employment Income) you have various ways to remit payments to the IRS.   Here is a link for further details:   https://ttlc.intuit.com/turbotax-support/en-us/help-article/estimated-taxes/make-estimated-tax-payments/L5svMESaC_US_en_US

Have an amazing day. Evelyn M (CPA 20+ years)I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer"