I have a regular job paid with a W-2 and a side gig paid with a 1099-NEC.
I set up my W-4 at my regular job to have about $500 in extra Federal withholding (and $200 extra for State) each paycheck to pay for the estimated taxes owed on the 1099 job.
I understand that I have to pay both federal income tax and self employment tax on my 1099 job.
My question is, how is the $500 in Extra Withholding split up between federal income and self employment tax? Does it cover both of these taxes or does it only cover one but not the other?
Thanks in advance!
