Estimated Taxes

[RBS82]

I am a W-2 employee. My husband was a W-2 employee until a few days ago.  He is going to start driving for Uber this week. He is looking for another W-2 job and may continue driving for Uber for extra income. We are married filing jointly. Will we need to make an estimated tax payment in January 2025 for fourth-quarter 2024 for 15.3% of what he made from Uber? 

[Loretta P]

Hello RBS82,

Self-employed or contract employees paid with a 1099-NEC are required to make estimated tax payments.  These payments are normally made quarterly.   

Since you did have a w-2 job or are filing a joint return with a spouse who has a w-2 job, you will need to calculate what your estimated tax will be for 2024 and the subtract what has been submitted so far as withholding from the w-2 jobs.  The balance left after subtracting withholding would be the amount you want to submit as estimated tax payments.  I would suggest making your first estimated payment with the 3rd quarter deadline and base it on your year to date earnings.  The 4th quarter estimated payment is due January 15th, 2025.  You would base that estimated payment on your earnings from 10-1-2024 through 12-31-2024.  You can submit your estimated payments online at the IRS website or you can print the estimated voucher and mail it to the IRS with a check or money order.

TurboTax's Tax Caster tax calculator is a good tool to help you estimate your 2024 tax bill or if you may get a refund. 

Here are some helpful links with additional information on how and when to make estimated payments.

Estimated Taxes: How to Determine What to Pay and When 

When to pay estimated tax

[RBS82]

Thank you for the response. Could I pay the estimated tax via my W-4, or my husband‘s W-4 when he finds a new W-2 job instead of making quarterly payments? If so, how would I calculate the estimated payment to add to the W-4? We are in the 22% tax bracket.

[Loretta P]

Yes it would be possible to adjust the withholding through your employer or your spouse's employer by submitting a new W-4 form to the employer.  You can use the TurboTax's W-4 Calculator to help you figure out how much you need to adjust your withholding.  You would then use the information from the calculator to fill out a new W-4.  Many employers have you submit an updated W-4 online, if not you can turn in a blank paper form. 

IRS Form W-4 - blank copy of W-4 form