Hi: I'm a W-2 employee with withholdings and have self-employment income. Normally, I increase my W-2 withholding to cover federal tax/SE tax from my SE. But this year I got larger than normal self-employment income in March. This would mean I have to increase withholdings by several thousand dollars for the remainder of the year. My options as I see them:
1) I can make a large "first estimated tax payment" (about 10-15K) so that I don't have to increase my withholdings.
2) I can increase my withholdings for the remaining year.
I am hesitant to use option 1 since on form 2210, only withholdings (line 6) can be used to determine underpayment penalties (or the need to file form 2210). But then again, when I make a large first estimated tax payment for Q1 (my option 1), this seems to be the cleaner method.
Is there any way I can make my estimated tax payment and still NOT file Form 2210?
Bonus question: Do all self-employed individuals without W-2 withholdings file form 2210?
Thanks all!
