New 1099 Contractor

[kwilkinsbookkeeping]

I just transitioned from my salaried employee position with a company to a 1099 contractor position. Is there an income threshold that dictates whether I have to file and pay quarterly taxes? I've always heard that you should estimate about 15% of your income for taxes, is that accurate?

I owned a small business last year and didn't file or pay quarterly, I just filed my annual taxes. I didn't owe anything due to the expenses outweighing the revenue. 

[Katherine S 63]

Great question, 

Here are my favorite Self Employment links:

Self employment tax

Self employment tax hub with calculator

Self Employment income and expenses

The Self employment tax hub with calculator link is nice to see how much you need to be withholding.

You can also get some estimate on how much you will owe by using one or both of these links.

Here are my two favorite links for tax estimator.  Remember that they do not save so they will time out.

IRS Tax estimator

Taxcaster

Use these throughout the year to see if you are owing.  What I would suggest is doing a tax estimator to see if you are going to owe anything for 2023. Then you can use this to estimate your amount that you will owe and then send in estimated tax payments.  

Pay your estimated taxes by setting up an account with the IRS and state and make payments online.  You can also mail your payments to the IRS or state.

I hope you have found this helpful.

Katie S.