It depends. The IRS Form W-4 is used to provide to your employer so they know how much federal tax to take from each check as a payment towards your tax when preparing your tax return. If you would like to adjust that for your self employment you are allowed to file this form with your employer as often as you need to. You can always add an additional amount to be withheld each pay period on line 4c.
I assume your realtor activity is a side business and it would be reported as self employment income. If you are actively pursuing a realtor business for profit, then whether you have income or just expenses in the early or first year it is reported on Schedule C.
To figure out the amount of tax on your self employment income:
- Calculate Self-employment tax (net profit x .9235 x .153 = SE tax) for each period to see if estimated tax should be paid
- Personal Income tax (based on the rate at which your combined taxable income from all sources falls)
- Tax rates for 2024 - see page 7 of Form 1040-ES
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
