tax withholding

[Amy00]

I have 2 jobs; one withholds taxes. I am self employed for the second, and earn about $20,000 per year.  How should I pay my estimated taxes?  I'm wondering if I can have more withheld from my "regular" job as the most efficient way to do that.  

I haven't paid any estimated tax for 2023 yet, so how should I do that for this year, and how can I best be proactive and get it set up for next year?

Thanks.

[KarenL4]

Hi,

Great question!  Having two jobs does require careful attention to the W-4. This article does a wonderful job of addressing multiple jobs and also gives you a link to TurboTax's W-4 withholding calculator.

Of course, you also have the option of making estimated payments to the IRS, which you can easily do via this link.   Truthfully, the IRS doesn't care which way you give it the money, as long as it gets it and it's timely.

Hope this helps.

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Best,

Karen

[HasaniJ]

Yes, you can use your regular job to withhold additional taxes for your side income.  However, please take note that your side job will trigger self-employment and income taxes so the additional amounts you withhold may not be enough.  It would be wise to make a 3rd quarter and 4th quarter payment to help with the filing of your return.  Below is also a link that can help in determining what your potential tax liability or refund could be based on your situation.  

Self Employed Tax Calculator & Expense Estimator 2022-2023 | TurboTax® Official (intuit.com)