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Level 1
posted Aug 30, 2023 11:27:04 AM

Estimated Tax Payments for those with both W2 and 1099 income

Hi,

If I make income from 2 separate jobs, one with a W-2 (probably 85% of my income) and the other with a 1099 (15% of my income), do I still need to make quarterly estimated tax payments for the 1099 income?

Thanks,

0 1 209
1 Replies
Employee Tax Expert
Aug 30, 2023 11:34:24 AM

Thanks @mm146 for your question!

 

If enough taxes are withheld on your W2 to cover the taxes on both your W2 Income & self-employment income, then you need not pay estimated taxes quarterly. You can use the Tax Caster tool from TurboTax. Also after using the tools, you have the option to increase your withholding(w4) with your employer or pay estimated taxes

 

Based on your 2022 tax info, TurboTax will  use the lower of the following IRS-approved methods to calculate your estimated tax payments.

  • 90% of your estimated 2023 taxes
  • 100% of your actual 2022 taxes (110% if your adjusted gross income was higher than $150,000, or $75,000 if Married Filing Separately)

There are two additional IRS-approved methods available:

  • 100% of your estimated 2023 taxes
  • 66 2/3% of your estimated 2023 taxes (farmers and fishermen only)

If you’d like to use one of the additional methods, answer Yes to the question "Do you want to adjust your income or deduction?" on the Review Your Estimates for 2023 screen. Once you review your income and deductions, you’ll have the option to select from any of the four methods.