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New Member
posted Jan 17, 2022 11:37:17 AM

If you are a W2 employee who started freelancing, do you need to pay quarterly for 1099 income that started part way through the year?

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2 Replies
Expert Alumni
Jan 17, 2022 11:50:00 AM

Yes, if you have self-employed income starting mid-year, you should pay estimated taxes from the quarter in which you start having self-employed income to avoid having to pay a penalty for underpayment of estimated taxes.

 

Please read this TurboTax article for more information.

 

 

Level 15
Jan 17, 2022 12:14:51 PM

If you prefer, you can increase the withholding from your W-2 job to cover the tax on your 1099 income, instead of making separate quarterly estimated tax payments.