Question

Live in California, but work in WA

Forum|Forum|2 years ago
August 8, 2023
1 reply
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I am looking to start work remotely for a company in the State of Washington. I live in California... I will be given a 1099. What is the best way to set up financially for paying taxes in CA? Will I need to put money to the side to pay for income taxes since I reside in CA and my pay will not have any taken out each month...

Thank You.

T

TomD8

Employee

Since no taxes will be withheld from your pay, you'll have to start making quarterly estimated tax payments to both the IRS and the State of California. These web references explain:

https://www.ftb.ca.gov/pay/estimated-tax-payments.html

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

A general rule of thumb would be to set aside 20-25% of your pay in order to have the funds available to make these quarterly payments.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.