Hi,
I just left my job and switched to contracting. I know I have to pay quarterly estimated taxes. However, right before I left my job I got a sizeable bonus payout and due to this the IRS and state withheld a significant portion, so much that I know I will have overpaid my taxes by about $5K based on the fact that I know in my contracting role my hours will greatly reduce and my income won't be very high at the end of the year. Since I've overpaid on the W2 earnings that I know I would get back in a refund at the end of the year, can I adjust my estimated tax payments down since they would be offset by the overpayment or will that cause penalties because they are from different sources?
