not quite correct. you have self-employed income. on that income you pay not only income taxes but as much as about 14% in self-employment taxes. this is not a problem as llong as enough taxes are paid in duing the year
here are the rules to avoid penalties for not paying in enough during the year
There will be no federal penalties for not paying in enough taxes during the year if withholding
1) and timely estimated tax payments equal or exceed 90% of your 2021 tax
or
2) and timely estimated tax payments equal or exceed 100% of your 2020 tax (110% if your 2020 adjusted gross income was more than $150K)
or
3) the balance due after subtracting taxes withheld from 90% of your 2021 tax is less than $1,000
or
4) your total taxes are less than $1,000
state laws differ
