`
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

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

1 Reply
Highlighted
Employee Tax Expert

Was a W-2 employee, now a 1099 contractor, how to use TurboTax for quarterly tax payments

TurboTax 2020 is not available yet. However, you do not need it in order to calculate your 2020 estimated taxes. 

 

This article has a lot of useful information. 

 

You can also use TurboTax TaxCaster to calculate your estimated tax payments.

 

You are correct, you will need to make quarterly payments. And here is how you make them

 

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); 

home office deduction;

office supplies;

telephone, internet;

business meals, etc. 

 

 

Here is some more information for you to read.