topic W-2 from 2020 and 1099 job started in 2021 in Get your taxes done using TurboTax

W-2 from 2020 and 1099 job started in 2021

nnroger2 — Mon, 15 Mar 2021 05:17:51 GMT

Hello,

I work a full time job that I get a W-2. I will be filing my 2020 W-2 as normal. I recently started a job in February 2021 as a contractor that pays at the end of the month for the previous month (so my first pay check in 3/31). Am I expected to pay taxes on the contractor job, especially when I haven't actually been paid yet? I know 1099 taxes are due by April 15th but since I start this job a month ago, I haven't received a 1099. Any insight into how or if I'm supposed to pay taxes on the contractor job that I start in Feb 2021 would be helpful. Thank you.

Re: W-2 from 2020 and 1099 job started in 2021

DavidD66 — Mon, 15 Mar 2021 05:38:53 GMT

As a self-employed independent contractor, you should pay estimated taxes quarterly, as you get paid. Since you won't get paid in the first quarter, you don't need to worry about a first quarter estimated tax payment. You won't receive your 1099-NEC for the work you do in 2021 until early 2022. You need to keep track of your income and your expenses and pay the estimated taxes accordingly.

For more information on Estimated Taxes, to to Estimated Taxes - Internal Revenue Service

Re: W-2 from 2020 and 1099 job started in 2021

nnroger2 — Mon, 15 Mar 2021 14:51:18 GMT

Thanks so much for your reply. I will technically get paid in the first quarter in 2021 since my first paycheck will be on 3/31. Do I still pay taxes on that?

Re: W-2 from 2020 and 1099 job started in 2021

DianeW777 — Mon, 15 Mar 2021 15:24:40 GMT

First, you must track your expenses as well because your tax will be on the net profit. Since you will be paid on 3/31, then your first estimated tax payment will be due April 15th (unless due to the current atmosphere they change and extend that date).

For self-employment keep in mind that there are two parts to the tax.

Self-employment tax (net profit x .9235 x .153 = SE tax)
Personal Income tax (based on the rate at which your combined taxable income from all sources falls)
- Depends on filing status, taxable income amount from all sources and anticipated itemized deductions if applicable
- Use the Tax Rate Schedules in the Instructions Form 1040-ES to estimate your tax rate

The estimated tax due dates are:

April 15th

June 15th

September 15

January 18th