BillM223
Expert Alumni

Retirement tax questions

You normally should have paid at least 100% of last year's tax by the end of the year. Note that your tax will apparently increase a lot because you will be paying income tax on your 1099-NEC as well as self-employment taxes on your net profit from the side gig.

 

Don't wait until the end of the year, but create a test return (easier if you have the desktop software - Online requires a separate TurboTax account), and try out your probable tax return, assuming that the 2023 software will put you in the right ballpark. Then aim to have paid 100% of tax by the end of the year (just to be safe).

 

I have done this, and I would put 25% of my gross each pay period into a savings account from which I would make as an estimated tax payment every quarter.

 

Your numbers will absolutely vary because some people have such high withholding on their W-2, that they don't need to do this. But you won't know until you make the test return.

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