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bjohnson28
New Member

Quarterly Payments Required?

Hi there,

 

This is my first year as an IC (part time) for a company in addition to being employed full time. My IC job is hourly and I expect to earn somewhere around $13,000 for the year (I'm not certain what the total will be since my hours fluctuate week to week but this is a good guess). Will I owe at least $1000 based on these gross earnings and thus need to start quarterly payments? I have not done so up to this point since I would be right on the cusp...but would start tomorrow if necessary. Is there any penalty to overpaying on the IRS website since I don't have previous years to compare to?

2 Replies
Critter-3
Level 15

Quarterly Payments Required?

There is no penalty for overpaying your taxes  just for under paying them.  You could increase your withholding at your job to make up the difference  or  pay an estimated payment.  

 

How to make the Estimated payments

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-make-estimated-tax-payments/00/25875

 

 

Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

 

The 1040ES quarterly estimates are due April 18, June 15, Sept 15 and Jan 17, 2023.  Your state will also have their own estimate forms.

 

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2022 Estimate

 

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).

 

 

Mike9241
Level 15

Quarterly Payments Required?

on $13K of IC income, it is likely you'll owe almost $1800 in self-employment tax + regular income taxes.

 

 

the SE tax is about 14.13% times the net IC income  (if your wages take you over the Social Security maximum of $147K  in 2022

then the 14.13% drops to about 2.68% 

for more info look at schedule SE. it's for 2021 so change line 7 to $147,000 for 2022

https://www.irs.gov/pub/irs-pdf/f1040sse.pdf 

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