Do I need to pay quarterly estimated tax if I expect to owe <$1000 from my self-employed income, but >$1000 from my w-2 employed income (tax is being withheld from the employed salary)?

[Coleen3 · Accepted solution]

Yes, you can choose the much easier method of having more withholding from work, rather than making estimated payments.

[ircus]

Thank you, if I choose to withhold more from work, what should I be aiming for? Not to have an overall outstanding balance of >$1000 when I file annual tax return?

[Coleen3]

I'm glad it was helpful. If you are paid every two weeks, calculate the amount of tax liability you expect to have and  divide that number by 26. You can ask for a particular dollar amount to be withheld over and above the number of exemptions claimed.

[ircus]

Got it, what if I’m filing jointly with a spouse who has extra tax withheld from their salary, would their witholding cover my self-emploed tax liability the same way as my salary withholdings would?

[Coleen3]

Yes. All withholding is netted together on a joint return.