Self employed

Hello @hzfess 

Thank you for joining us today!  We are so happy you are here!  You're a busy bee!  

Depending on several situations within your tax return will be determine if you need to make estimated payments or not.  

If you make $400 or more in contracting gig work, you will need to file a Schedule C with your personal tax return Form 1040.  You will report your Gross income, and then expenses for the year, and your net profit is what you will pay taxes & self employment tax on.  

Your net profit/loss income is figured in with your W2 Income from both jobs, and any other taxable income to come up with your adjusted gross income.  If you have a net profit, you will have to pay Self Employment tax on that profit.

Question 1: What percentage of my bi-weekly contractor pay do I need to set aside for taxes (federal and GA state taxes)?  I would recommend trying your best to determine if you will have a profit or loss for that quarter and make quarterly estimated tax payments.  Here is how to determine Federal Estimated tax payments, and Georgia Estimated tax payments.

Question 2: Will I need to pay my taxes for my bi-weekly contractor pay quarterly OR do I wait until I file my W-2 tax forms?  The best options would be to either pay Quarterly or Annually, when you file your Annual Tax Return.  Please use the links to determine the best outcome for your situation.

I hope this helps and I am more than willing to provide further information if you have more questions.

Good luck and thank you again for participating!

Cheers, 
Holly W