If you are asking which version of TurboTax to use for your 2020 tax return you are going to need either online Self-Employed or any version of the CD/download. Those are the versions that can prepare the schedule C you need for your self employment income.
You do not file quarterly tax returns----if you are making estimated quarterly payments you can use the 1040ES vouchers that will print out with the printed 2020 tax return, or you can just pay directly on the IRS site to make your quarterly payments.
It sounds like you have two state returns to prepare for NY and NC----sounds like part year for each state.
https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs
Thank you for the reply!
Let me elaborate a little... the 1099 income was earned from April 2021 through now, so far only about 2.3k. It's a part time, semi-retired job that I started when my wife and I relocated to NC from NY.
The w2 income ended at the beginning of April 2021, when I left my previous job.
So, we're talking about 2021. Is it necessary to make estimated payments, or can I just do the whole thing when I file for 2021?
Simple answer: you can just do the whole thing when you file for 2021.
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You should make estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. (110% if your income will be more than $150K) . Your prior year tax return must cover all 12 months.
TurboTax (TT) can prepare the quarterly payment vouchers. In your 2020 software (any version will work), enter at:
Federal Taxes or Personal (H&B version)
-Other Tax Situations
-Other Tax Forms
-Form W-4 and Estimated Taxes - Click the Start or Update button
On the next screen answer No to the W-4 question
If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”
Or you can obtain blank IRS Form 1040-ES from the IRS. The form and instructions are at this link: https://www.irs.gov/pub/irs-pdf/f1040es.pdf
You can also pay Federal directly here. Be sure to select 1040ES:
You will not be able to do NC estimated payments, in TT, because you do not have NC software. But you do not need to do NC estimates since your 2020 NC income was 0.
Thank you so much for the info! ...my wife and I have always filed married filing jointly...she has a w2 job ... will the fact that my employment is 1099 change this for 2021?
Q. Will the fact that my employment is 1099 change this for 2021?
A. Yes and no. No; as long as you meet the limits shown above, no underpayment penalty will be due. Yes, in that you will owe Self Employment Tax (SET) in addition to income tax. "SET" is how the self employed (anybody getting a 1099-NEC is considered self employed) pay their social security and medicare tax.
Your wife can increase her W-2 withholding at work, instead of you making quarterly payments. Since you're filing a joint return, her withholding applies to your combined tax liability.