topic Do I need to pay estimated quarterly tax? in Get your taxes done using TurboTax

Do I need to pay estimated quarterly tax?

1stindep — Tue, 10 Feb 2026 10:16:18 GMT

I am new to being an independent contractor. I began a couple of part-time gigs last year and earned income from these gigs during the final quarter of 2023. However, my income was only 1,130.42. It is my understanding that The IRS requires quarterly estimated tax payments if you expect to owe at least $1,000 in federal tax for the year and North Carolina state tax appears to follow the same rule. While I don't expect to have to pay 1,000 in taxes, how do I know for sure? If necessary, I will need to submit an estimated quarterly tax payment by January 16th.

Re: Do I need to pay estimated quarterly tax?

Bsch4477 — Sat, 06 Jan 2024 00:53:19 GMT

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Re: Do I need to pay estimated quarterly tax?

Mike9241 — Sat, 06 Jan 2024 03:07:03 GMT

as an IC you owe self-employment tax of about 14% of your net self-employment income. so if that number is net you'll owe the IRS about $160 as SE tax but no federal income tax for 2023. I don't know the rules for NC if you have no income tax liability in the prior year (2023) when you file for 2024

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here are the federal estimated tax rules to avoid penalties in 2024

There will be no federal penalties for not paying in enough taxes during the year if:

timely estimated tax payments equal or exceed 90% of your 2024 tax or
timely estimated tax payments equal or exceed 100% of your 2023 tax or
the balance due after subtracting taxes withheld from 90% of your 2024 tax is less than $1,000 or
your total taxes are less than $1,000

look at option 2.

assuming 1) that $1130 is your net SE income 2) your 2023 SE tax is about $160 and 3) you have no other additional taxes or tax credits, then to avoid penalties regardless of what 2024 is you only need to pay that $160 - $40 each quarter. (4/15/2024, 6/17/2024,9/16/2024, 1/15/2025).

if you expect to owe more in 2024 and don't want to owe a lot come 4/15/2025 you can pay any additional amounts that you want.