Hi, tracimorales,
Congratulations on pursuing your Masters. From your message, it sounds to me like you will be filing a Federal Form 1040 with both W-2 and Schedule C (Self-Employment income) for 2023 plus your state income tax form, if applicable.
Self employment income has two types of federal taxes attached to it. One is self employment taxes (SET) (FICA+Medicare), both the employee and employer portions. Most people don't think about the fact they pay this tax with a W-2 job as FICA and Medicare withholding (and then their employer matches it, bringing the total SET taxes to 15.3%, remitted to the feds by the employer). In the case of a self-employed person, you are both the employer and the employee and you have an obligation to remit your SET taxes quarterly (April 15, June 15, Sept. 15 and Jan 15th for the prior year).
In addition to SET taxes, you also need to pay income taxes (federal and state, if applicable) on the net self employment income. Here is a link to the tax brackets for 2023 federal taxes. Most states also want quarterly estimated tax payments and you can usually find those requirements on your states Department of Revenue site.
Note: You are not taxed your gross self-employment income, but rather on your NET self-employment income, after allowable deductions (likely related to your car and a few other things. This article outlines some common deductions for Door Dash drivers
This article explains about SET taxes and the requirement to make estimated tax payments.
While it's still set to 2022, this calculator may help you get in the ballpark about your tax obligations. It will be updated when 2023 information is available.
Hope this helps!
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Best,
Karen
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