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Returning Member
posted Aug 30, 2023 12:19:44 PM

etsy shop and other part time employment

I'm getting ready to re-open my etsy store, after i get registered and sales tax number etc. I also currently work occasionally as a substitute. My husband and i file jointly, and i have previously included the shop's income as "freelance" (since its graphic design). Will i have to pay quarterly or continue to do what I have done it the past?

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1 Replies
Employee Tax Expert
Aug 30, 2023 12:29:23 PM

Whether or not you will need to pay quarterly estimated tax payments depends on several factors.  Generally, the goal is to avoid $1,000 or more at year end because you will incur an estimated tax filing penalty if you owe that much.  IRS wants you to pay in the amount of tax that you owe as you go throughout the year so that at year-end you have a small amount owed or due back to you.  Here is the instruction booklet for the estimated tax payments.  You will see the worksheet in there that you can fill out to calculate your quarterly payments.

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