Hello! My wife and I earn significant income from a live-selling side gig. We will be getting a 1099k, are we expected/ required to file estimated quarterly taxes? If so, can this be done through turbo tax and/or how is this completed? Thanks!
Congratulations on your live-selling gig! Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when the return is filed. Estimated taxes are paid directly to the IRS and state agencies. You can now 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. If you would like to calculate your tax liability for this year, if you have used TurboTax Desktop software you can use this to create various scenarios or you can also 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. Once you have determined the estimated amount of tax due for a tax year, you can then divide by 4 to determine the quarterly estimated tax payments.
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