Thank you for your quick response Hal-Al! Im sorry but I think I need further clarification on a few matters:
1) when you say "As an independent contractor, you file schedule C as part of your regular tax return (form 1040)." Does that mean that come regular tax time I need to include whatever income I earned as a n independent contractor on my 'normal' tax form, come tax time?
also..
2) "You should pay in quarterly estimated taxes if you don't have enough withholding taken out to cover the tax on all your income."--does "all my income" mean both my firefighting job and my uber job? I am currently claiming 0 for my fire job. Also..the quarterly estimates are only for my uber, right?
3) When you say :"You should make 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.)".... does this apply to my total combined income (both fire and uber) ? or just my uber?
4) does "If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven” mean 100% of my prior year's liability for my fire job...or my uber? I was not driving uber last year.
I am sorry for the questions...I am obviously not very good at all this, but I am looking to take care of it properly so as not to cure the wrath of the IRS. Mahalo!
