Both my husband and I have full-time jobs. We also do contract/gig work in theatre. Our full-time work has W4 and we pay taxes. Our contract/gig work is not taxed. We end up paying a lot at tax return time and a penalty even though we both selected to have extra taken out in taxes each pay period. What more can we do to avoid a large tax bill plus penalty fees? How can we best calculate that or pay ahead?
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You could be paying estimated quarterly payments to avoid an underpayment penalty or big tax bill for next year. Either increase your withholdings on the W-4 for your W-2 income or start making estimated quarterly payments.
You have self-employment income for which you will pay self-employment tax for Social Security and Medicare. You will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.
https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes
https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922
https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax
https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c
https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct
https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-
calculator-2021-2022-50907/
https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs
https://turbotax.intuit.com/tax-tools/calculators/self-employed/
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