Hello, I am currently an Indiana resident working for a church as a volunteer who is receiving monthly stipend compensation over two years for participating in a leadership development program. The total amount of funds received at the end of the year comes out to 18,000 roughly and as a result I receive a 1099-NEC for tax purposes. The only other income I receive is from another part time job where I make less than 40 dollars once a month, not really enough to affect my over all taxes. For that job I receive a W2 back at the end of the year. When I filed my taxes for the previous year I found out that I should have been making quarterly estimated payments for state and federal throughout the year instead of a one time payment. I was charged a penalty fee and I am hoping to avoid these fees this year. How much should one be putting back as a 1099-NEC worker if that is their main source of income? How does making quarterly payments work? How do I know how much to save per estimated payment?
