I live in Colorado and I've been working at a part-time traditional W2 job for the past couple years, and have not ever ended up owing money for taxes at the end of the year. However, I'm considering signing up to drive for a food delivery service to help supplement my income. (This is the option that works best with my current schedule, as I would be able to work this driver job in between my current job).
I'm having a little trouble understanding how I would handle my taxes if I decide to do this. I understand that the food delivery job is an "independent contractor" type of job, and that I will only receive a 1099 tax form if I earn more than $600 in the calendar year. Where my confusion comes in is with the "quarterly taxes" process. As I understand it, paying quarterly taxes is an important part of working an independent contractor job because it allows the government to be sure they can collect the correct amount of income tax for the year (rather than the contractor owing a large amount at the end of the year).
Does the fact that I have a W2 job as well change whether or not I need to pay quarterly taxes?
Do I need to even worry about quarterly taxes until I've met the $600 threshold?
How and where do I submit quarterly tax payments?
How do I know when these payments need to be submitted?
How can I tell or calculate how much I am supposed to be submitting each quarter?
If I am paying quarterly taxes properly, am I likely to owe money at the end of the year still?
I've tried looking at guides online and it feels like the information gets very complicated very fast. It's pretty frustrating because I'm trying to supplement my income, but the information available really makes it seem like I would end up owing several hundred dollars at the end of the tax year. That seems to negate the purpose of picking up another job to supplement my income. I understand every tax situation is different too, but I'm looking for advice to help navigate this odd situation.
