Context: I had W-2 income this year only for January. Between February and June, I received unemployment benefits from which federal income tax has been withheld. In June I started a 1099 work for which I received paychecks in July and August so far. Due to the nature of my current job, it's not possible for me to accurately estimate my income for rest of the year.
Q1: In my understanding, the simplest thing would be to pay 110% of my last year's tax liability which is line 24 on 1040 (my household income for married filling jointly was more than 150K). Is this understanding correct? This year, I am not anticipating earing more than last year.
Q2: Since I started 1099 job only in June, I did not have to pay any estimated taxes for Q1 and Q2. So, is it okay if I pay 110% of last year's tax liability in two chunks, one in Q3 (Sep 16) and one in Q4 (Jan 15'2025)? Do they have to be equal chunks?
Q3. I am deducting the following's from my tax liability this year - Federal income tax, social security tax, Medicare tax withheld from my W-2. I am also deducting the amount withheld from my unemployment benefits. Is it correct?
Q4: I am using this formula to calculate estimated taxes for Q3 (Sep 16) and Q4 (Jan 15, 2025) --> (110% of last year's tax liability [Line 24 on 1040] - this years total tax withheld) / 2. Please confirm if this is correct.
