I have a W2 Salary job, 1099 self employed income, and started a separate LLC I formed in a different state in early june for online sales income. I have not filed taxes quarterly. The income from my LLC is greatly outpacing my W2 income this year and I am worried about incurring penalty fees for not filing quarterly and just paying them at the end of the year.
If I increased the tax withholding from my Salary job enough to meet my expected taxes owed from my LLC income, would that allow me to avoid penalties/fees from not filing quarterly?
Hi There:
If payment is timely, increased W2 withholding can be used in lieu of estimated tax payments. The New IRS W4-Line 4 C will allow an extra dollar amount to be withheld per period. Depending on your employer, you might be able to to make the change online through employer payroll dept. If not, please turn in paper form to employer payroll dept.