Was a W-2 employee, now a 1099 contractor, how to use TurboTax for quarterly tax payments
This is new to me. Retired recently in 2020 from a W-2 position. Most of income this year will be from the W-2 position. Now, they requested I return for some tasks as a 1099 contractor, part time, starting now, possibly through next year. I know I will need to pay quarterly taxes, but how? Unclear to me how to use TurboTax 2020 (?) for quarterly payments. Sounds like I need the Self Employed TurboTax, but I need the 2020 version, not the 2019 version? Or, what forms do I manually need to complete in addition to using TurboTax? Thx
Eventually, when you prepare your 2020 tax return (in 2021), you will need TurboTax Self-Employed version. Besides a W-2 from the employer, you should be receiving a Form 1099-NEC reporting your independent contractor income. All that and other tax forms you will enter into the software in 2021.
One important thing to remember: your independent contract income can be reduced by ordinary and necessary expenses to generate this income. Some examples:
miles driven from your office (possibly home office) to see your client(s);