I earn income both as 1099 and W2. Probably about 75% through W2 and 25% through 1099. This is my first year making so much through 1099. How do I know if I need to make estimates quarterly tax payments?
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Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when tax return is filed. Since the majority of your income is thru W2, you may want to consider adjusting your paycheck withholdings by using a W-4 form (this form is provided to your employer to make changes to your federal withholdings on your paychecks). This could then cover the tax from the 1099 income instead of making estimated payments. Basically, you would be paying the "estimated payments" thru your paychecks instead of mailing in a separate payments. In order to do this, you would need to calculate your total tax liability for the year (you will need your paystubs and also estimated net income from 1099s). You can use the Turbo Tax withholding calculator at no charge: https://turbotax.intuit.com/tax-tools/calculators/w4/ . This can be used to calculate your tax liability for the year to use as your basis for your estimated tax payments. It will take into account W2, investments, withholdings, business earnings, etc. to calculate the estimated tax liability. Since you are also entering your paystub information, including your federal tax withholdings to day, the withholding tool would then provide you with the estimated tax liability due. You can take this amount and divide it by the number of pay periods remaining in the year. For example, if the tax liability (after including your current withholdings) was $2,000 and your had 10 pay periods remaining, you could have any additional $200 withheld from each paycheck. In order to this, you would complete a W-4 form and add this as an "extra" withholding from your paycheck on Step 4, Line (c) Extra Withholding.
Turbo Tax can also assist you with with W-4 and Estimated payments.
You can go through the section "W-4 and Estimated Taxes" to figure your customized 1040-ES quarterly tax payments for 2022. There is also a place in that interview to enter what you have already paid for 2022 (if applicable), and it will let you include any expected income changes or any other changes you have for 2022.
NOTE: When you open your return back up, do not make any changes in the return itself since it's already been filed. It's OK to go through the estimated taxes interview that I describe below, but do not make changes in the original return--just in case you later have to amend it, which must start out exactly as originally filed.
If you prefer to make estimated payments instead of W4 adjustments, you can pay directly online. If you do not have an IRS account, you may want to considering setting one up: https://www.irs.gov/payments/your-online-account You can then easily make and track your IRS estimated payments. Also, as a reminder, be sure to also calculate and make estimated state payments, if your state requires you to do so.
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