Quarterly Tax payments

[pmejer]

Currently I get a W2 and make above $100000 a year.  My wife does all 1099 work and currently makes around $25000 a year.  Based on those numbers, do we need to set up quarterly payments?

[Laura_CPA]

Hi Pmejer,

Happy to help answer your question!  If your spouse has not made any estimated tax payments and assuming the $25,000 is net profit, she will have to pay self-employment tax and ordinary taxes. Please use our Tax Calculator to estimate the tax liability: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Usually, if you believe that you will owe $1,000 to the IRS, they require estimated tax payments. The Tax calculator should help determine that. If you owe, you can still make a 3rd and a 4th quarter estimate payment, by 9/15/23 and 1/16/24, respectively. Note: these payments will be picked up on your tax return to offset your tax liability. 

More on estimated tax payments, please see: https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Cheers,

Laura