Hello. I was unemployed in 2024 for 11 months (Feb-December). I received regular income for February, and I received a severance pay, from which taxes were pulled. I have 2 issues I would like help with.
A) I created a single person LLC for consulting purposes, and I received $10,500 in consulting fees. I opened a separate business bank account, and they automatically pull taxes and put them in a separate account, but do NOT automatically pay the taxes to the IRS. Both the income and the taxes are still sitting in my business account. So HOW do I report this income to the IRS and pay taxes? I know I was supposed to file quarterly taxes, but I did not receive the income until December, and larger than typical taxes were pulled from my severance check (as if I made that much per 2 week period for the entire year), so I suspect that I have paid over 90% of what I will owe, if I owe any. So I am not certain what to do now that it is after the quarter tax payment period.
B) I received unemployment from the State of Texas. In the application form, I explicitly selected the option to have the State pull taxes (they pull 10%) from my payments, and printed out the application form JUST before I hit 'SEND' to ensure I had a copy of it. However, the State did NOT pull taxes from the unemployment income. I am concerned that I will get some sort of penalty for not having paid taxes out of this income, even though it was not my fault. My main error was in 'assuming' it was being pulled and not double-checking. I was advised to go to the IRS page and there was a place that I could pay some amount of taxes outside of my normal tax filing, and that might avoid any penalties. So how should I handle this? Wait until I file my income taxes, or do something ahead of time on IRS.gov to pay for at least the 10% out of the unemployment pay.
Looking for some guidance here on these 2 issues. Thanks!
