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cutcat
New Member

I am on SSDI and recently got hired as an independent contractor part time. Do I pay quarterly taxes and how does that work while receiving SSDI? Do I still file at the end of the year since I don't receive SSDI statement until the end of the year?

 
3 Replies
cutcat
New Member

I am on SSDI and recently got hired as an independent contractor part time. Do I pay quarterly taxes and how does that work while receiving SSDI? Do I still file at the end of the year since I don't receive SSDI statement until the end of the year?

Thank you for the response.  I have already filed my taxes for the year of 2016.  I still need to know, if I will now be filing my taxes quarterly, which will now apparently include my SSDI income (which has always been taxable for me), what am I supposed to with the SSA 1099 from the Social Security Administration I receive in January 2018?  

I don't mind filing quarterly.  I don't mind estimating my income from independent contracting and Social Security / Disability on a quarterly basis, but I don't want to file four times a year if I'm going to have to file 2017 taxes based on the SSDI 1099 information I won't receive until January 2018.  But I will have paid on it on an estimated/quarterly basis already.  Does that make any sense?  Thanks.
Fern
New Member

I am on SSDI and recently got hired as an independent contractor part time. Do I pay quarterly taxes and how does that work while receiving SSDI? Do I still file at the end of the year since I don't receive SSDI statement until the end of the year?

You don't actually file a tax return quarterly. You make quarterly estimated tax payments. You will still file a tax return just once a year. The only thing you send in quarterly is the estimated payment voucher and your payment.
Fern
New Member

I am on SSDI and recently got hired as an independent contractor part time. Do I pay quarterly taxes and how does that work while receiving SSDI? Do I still file at the end of the year since I don't receive SSDI statement until the end of the year?

Yes, you should pay quarterly estimated income taxes. You should include your SSDI income in your calculation because the income you earn as an independent contractor may cause part of your SSDI benefits to become taxable.

Your Social Security benefits may be taxable if your combined income (independent contractor work and social security)  exceed the amounts set forth by the IRS.  A single taxpayer with a combined income of between $25,000 and $34,000 pay income tax on up to 50 percent of their Social Security benefit. A single taxpayer with a combined income of more than $34,000 owe income tax on up to 85 percent of their Social Security payments.

Married couples filing jointly with a combined income (including both spouses) of between $32,000 and $44,000 pay tax on up to 50 percent of their benefit. Couples with a combined income of more than $44,000 pay taxes on up to 85 percent of their Social Security checks.

You can use Turbo Tax to calculate your estimated tax payments.

You can prepare 2017 1040-es vouchers using your estimated 2016 income.  Select the "federal taxes" tab then "other tax situations."  Select "form w-4 and estimated taxes."  

Say no to the "adjust how much tax you pay" screen since this screen is about adjusting your withholding from a W-2.  Say “prepare now” to the "estimated taxes for 2016" screen.  This will ask you about what you expect your 2017 income to be & prepare the vouchers accordingly.  

If you have already filed your 2016 tax return, follow these steps to prepare estimated tax vouchers.

Sign into your Turbo Tax Online account.

From the Welcome Back Screen, select  Visit My Tax Timeline.

From the list of Some Things You Can Do, select Add a State. You are not going to add a state, but this will bet you into your tax return.  From here:

Select Federal Taxes
Select Other Tax Situations
Select Start or Update next to W-4 and Estimated Taxes
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