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I will be a 1099 independent contractor starting in June. This is my first year as a 1099. How do I go around paying estimated tax? Where Turbotax?

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June 7, 2019
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I will be a 1099 contractor starting in June. This is my first year as a 1099. I was unemployed with no income until from Jan to May.

Last year I only made around $20K in regular employment. I expect my income to be much more than last year. So I won't fall into one of the "safe harbor" I think?

How do I go around paying estimated tax? Where and how in Turbotax do I do this (also is there a 2016 Turbotax to use)?

I won't get my first paycheck until after June 15, do I have to file on June 15?

My income stream will be uneven, how do I estimate the uneven quarters in Turbotax? Do I need to fill out form 2210 and when do I turn in that form? April 15?

Best answer by Hal_Al

You should make 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.

You can prepare the 2016 estimate forms (1040-ES) in your 2015 TurboTax (2016 TurboTax is not available). You do not need to file a June 15 estimate. You may submit only 3rd & 4th quarter estimates. You do not fill out form 2210 until you file your 2016 tax return in 2017.

In TurboTax, Enter at:
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”

Hal_AlAnswer

Employee

You should make 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.

You can prepare the 2016 estimate forms (1040-ES) in your 2015 TurboTax (2016 TurboTax is not available). You do not need to file a June 15 estimate. You may submit only 3rd & 4th quarter estimates. You do not fill out form 2210 until you file your 2016 tax return in 2017.

In TurboTax, Enter at:
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”

fanfare

Employee

safe harbor depends on your tax paid , not your income. If you pay estimated tax at least as much as your total tax due last year, you should avoid penalty. You may still pay more now to avoid a big tax bill later.

Your quarterly 1040-ES should be based on your income in the quarter and you will know that - approximately - when you get there.