This is a great question and thank you! Estimated taxes are due if you believe you will owe at least $1000 in tax for the current tax year after your withholding and credits are considered. So, if your normal job takes out enough to cover the taxes on the side job income, there may not be a need for estimated taxes. However, if you think you’ll owe more than $1000 in taxes due to the additional side job income, then you’ll want to consider quarterly payments.
Quarterly taxes are due 4 times a year for the IRS and 3 to 4 times a year for your state (if they have a state tax). The IRS likes to collect tax as close to the time you make the money as possible, so you would “estimate” the amount of tax you owe on the revenue you made in each quarter and send the payment to them. The estimate is like withholding on your W-2, but you have to send it in instead of the company sending it for you.
Here is a great reference for additional questions related to Estimated Taxes: Estimated Tax | Internal Revenue Service (irs.gov)
Hope this helps and have a fantastic day!
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