I receive a 1099 NEC from my employer. This is my only source of income and it is around $3000/yr give or take a little. I am listed as an independent contractor and as if I am running a business, but it is more like "Hey, can you do this for me?" and then I will get paid. I am not running a business in which I provide these services to the general public. Last year when I filed taxes, my taxes owed was a little over 400, which was then reduced and I ultimately had to pay a little over 200. My questions are:
Do I need to make quarterly payments?
If so, how do I calculate this amount?
Is there a quick and easy way to make an estimation for quarterly payment?
Do I need to pay taxes to the state (NY) as well? if so, how and where? How is THAT calculated?
If I take on other self employed work, are the steps I need to take the same or different from what I need to do now?
I have seen the forms for calculating estimated tax, but find them very confusing. I am looking for a step by step process that details how to use/follow the necessary forms and how to make the calculations the forms ask of you. For example "Take the amount earned in the year and subtract 'X' to get 'Y' and then place that number here..." etc. I have been just filing my taxes during tax season and paying whatever is asked of me, but I would really like to understand what I am doing, how to do it, why I am doing it and if I even need to! Thanks for any help!
