topic Re: Calculating Estimates in Self employed

Calculating Estimates

Anonymous — Tue, 14 May 2019 22:12:53 GMT

How do I better calculate estimates when I also have W-2 income? I owed even when reporting 0 exemprions for my W-4 & using QBSE for my quarterly estimates.

Re: Calculating Estimates

Hi Palms — Wed, 15 May 2019 02:14:18 GMT

Turbotax has a tool called Taxcaster. Google the name and it will come up on the search. You can pay 100% of the tax on your 2018 return so you won't have to pay interest or penalties or pay 110% if your adjusted gross income for 2018 was more than $150,000.....$75,000 if you are going to file married filing separately for 2019.

Re: Calculating Estimates

Kat — Wed, 15 May 2019 03:48:49 GMT

I'd recommend using IRS Form 1040-ES publication. You'll see on page 8 of this publication a worksheet for calculating your estimated tax payments. But since you also have self employment income, you'll need to first complete the worksheet on page 6 before completing page 8.

It's a bit complicated, but it's the most accurate way to estimate your 2019 tax payments. I'm linking the publication below.

https://www.irs.gov/pub/irs-pdf/f1040es.pdf