1099-nec and quarterly payment

[user17581273726]

My wife and I file married jointly.  Her tax situation has changed this year.  She received her last paycheck from her employer in August.  Just a few months before that she became a contractor with a different company.  When do we start figuring out the quarterly tax payments?  Do we do that now or wait until we file in 2026?  As a follow-up, if we pay quarterly tax payments can that amount be taken from my withholdings (I would update my w4)?

[ShirleyP1]

Given the changes in your tax situation, it would be best to estimate your income and tax withholding now and not wait until you file your tax return.

It is recommended that you estimate your income and tax withholding throughout the year to avoid a tax due balance.  The tax needs to be paid as the income is earned, rather than at the end of the year or when the tax return is filed.  

If the estimates indicate there will be a tax due balance, you can adjust your Form W-4 or make estimated tax payments.

If you choose to adjust your Form W-4 with your employer, you can have an additional amount of tax withheld per pay period.  To calculate the additional tax withholding, divide the amount of the estimated tax due balance by the number of pay periods.  The additional tax withholding is entered on Step 4(c) of the Form W-4.  

For example, if you estimate your tax due balance will be $3000 and there are 6 remaining pay periods in the current year, the additional amount per pay period would be $500.

Please note:  This additional amount will continue to be withheld from your future paychecks until you adjust your Form W-4 to stop the additional withholding.

If you choose to make estimated tax payments, you can make those payments online at IRS.gov.  Quarterly estimated tax payments are due:

• April 15 for income earned January 1 to March 31
• June 15 for income earned April 1 to May 31
• September 15 for income earned June 1 to August 31
• January 15 of the following year for income earned September 1 to December 31

A few resources:

TurboTax and the IRS have withholding calculators available to assist with estimating income and tax withholding. 

Estimated Taxes: How to Determine What to Pay and When

@user17581273726 

[Opus 17]

If your wife started earning self-employment income in September, 2025, her first estimated payment would be due January 15, 2026.

Turbotax does not include the function of calculating estimated payments.  There are some online calculators, or it may be a built in function of business software like Quickbooks.  Remember that she will owe 15% self employment tax plus income tax (probably 12-22%) on the net income (profit after expenses) so don't forget to include expenses in your calculation.

Yes, if you increase your job withholding to cover the estimated taxes, that will also satisfy the IRS without the need to make a separate payment.  You will have to do some experimenting with the withholding calculator to see how to make that adjustment.  (For example, if your wife expects to earn a net profit of $4000 per month, how should you adjust your withholding to have an extra $1500 taken out of your paycheck?)

https://www.irs.gov/individuals/tax-withholding-estimator

[VolvoGirl]

For your 2025 return you file in 2026.  You need to make quarterly estimated payments based on when you get the income.   Or you can increase any withholding during the year to cover the extra income.

You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it.   You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

Turbo Tax guide to Estimated taxes

A Guide to Paying Quarterly Taxes - TurboTax Tax Tips & Videos

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).

To prepare estimates for next year you start with your current return, (if you can't get back into your return try this, On the Tax Timeline page you have to select Add A State to get back into your return). But be careful not to change anything on your real return.

Go to Federal Taxes or Personal (Home&Business version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

Say No to W4. When you get to the W4 and Estimated Taxes section, say you want to adjust your income to go though all the screens.

The 1040ES quarterly estimates are due April 15, 2025,  June 16, Sept 15 and Jan 15, 2026.  Your state will also have their own estimate forms.

Or here are the blank Estimates and instructions (the actual 1040ES forms are at the very bottom so scroll way down)

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