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posted Aug 28, 2024 12:39:07 PM

Self-Employed but Not actively working

Hi! So I am technically and independent contractor for a non-profit but I haven't worked in months. I sometimes get small jobs and work a few hours but it isn't consistent or guaranteed. Do I still need to be filing quarterly? 

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Employee Tax Expert
Aug 28, 2024 12:55:02 PM

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Individuals, including sole proprietors, partners, and S corporation shareholders, generally use Form 1040-ES, to figure estimated tax.

 

You don’t have to pay estimated tax for the current year if you meet all three of the following conditions.

  • You had no tax liability for the prior year
  • You were a U.S. citizen or resident alien for the whole year
  • Your prior tax year covered a 12-month period

You had no tax liability for the prior year if your total tax was zero or you didn’t have to file an income tax return. 

 

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

 

@isab1 Thanks for the question!!