Hi everyone,
I started working as self-employed in February 2024 with an income above the minimum payment threshold. Before this, I had no income in 2023. I recently got my Green Card, and this will be my first year filing any taxes in the US. I just learned that self-employed individuals need to pay quarterly taxes.
Given that this is my first year and I plan to file jointly with my husband in April 2025, is it possible to file Form 1040 without facing penalties for not paying quarterly taxes? Any advice or similar experiences would be greatly appreciated!
Hello
Hello there! You may be able to avoid penalties because this is your first year and you intend to file jointly with your spouse if your tax withholding and payments account for at least 90% of your 2024 tax obligation or 100% of your 2023 tax liability. Seeking advice from a tax expert is a smart move to make sure you're fulfilling all the criteria. Wishing you luck!
Regards
Nisha Marshall
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Observe your earnings and outlays with great care. To keep organized, use applications or tools for budgeting. Emergency Fund: Set aside money for unforeseen costs and poor business times. Try to save up to three to six months' worth of living costs. visits here [link removed]
@AndyRubyRei , while I agree with comments from @Bsch4477 , @nishamarshallll and @rajajackson , what concerns me more is that you did not mention anything about:
(a) type of entity you ( LLC, Partnership, C-Corp., S-Corp etc. etc. ) or are you a free-lance. There are major implications based on the type of entity.
(b) How did you file in 2023 --- Joint or Married Filing Sep or none ?
(c) Is your spouse a wage worker or also self-employed ? Again this offers a way to pay in your "estimated taxes" per quarter .
(d) what state are you a resident of ?
I will circle back once I hear from you , assuming you still need help.