Hello,
I am new to receiving self-employment income. The bulk of my income comes from a W-2 position. I make a smaller amount from a 1099 position. For the sake of discussion the amounts are approximately:
W2 - $450k
1099 - $60k
I have 3 questions:
1. I have heard if I just set my withholding to 0 I can have the maximum taxes withheld from my W2 position and be in the “safe harbor”, not owing any estimated taxes. Of course these depends on the values of each income , but how do I know that I am there? Currently W4 has 4 dependents.
2. I have already missed the first two quarterly tax payments, can I pay make up amounts at the next payments due and how do I know what that amount would be?
3. In the above scenario, what if the penalty at end of year filing if I don’t pay quarterly?
Thank you.
