Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
nanydo
New Member

I have a very small business on the side of my full-time W2 job, which I am making very little income. At what point is it recommended to file estimated taxes?

Is there a minimum income that is recommended to file estimated taxes?
4 Replies
VolvoGirl
Level 15

I have a very small business on the side of my full-time W2 job, which I am making very little income. At what point is it recommended to file estimated taxes?

You must make quarterly 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. (Your prior year tax return must cover all 12 months).

 

To prepare estimates for next year you start with your current return, but be careful not to change anything.  For Online returns, if you can't get back into your return, Click on Add a State to let you back into your retun.

 

You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

 

Or Go to….

Federal Taxes or Personal (Desktop H&B)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

 

For self employment ......

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

 

DoninGA
Level 15

I have a very small business on the side of my full-time W2 job, which I am making very little income. At what point is it recommended to file estimated taxes?

You can also use this IRS website to see if you required to make estimated tax payments - https://www.irs.gov/help/ita/am-i-required-to-make-estimated-tax-payments

nanydo
New Member

I have a very small business on the side of my full-time W2 job, which I am making very little income. At what point is it recommended to file estimated taxes?

Thank you so much! This is incredibly helpful.

nanydo
New Member

I have a very small business on the side of my full-time W2 job, which I am making very little income. At what point is it recommended to file estimated taxes?

Thank you!  

Dynamic AdsDynamic Ads
Privacy Settings
v