How do I pay quarterly taxes for a self-reporting hourly w2 job? Like, what website do I go to.

[swimteampie]

About 6 months ago I started a freelance gig, and I've been told that I might need to pay my taxes quarterly. However, I don't know how to do that, or how to even check if that's a necessary thing. Can anyone illuminate my situation? This isn't my world and I'm guessing.

[VolvoGirl]

What do you mean a hourly W2 job?  If you are self employed you get a 1099Misc not a W2.

For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

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).

Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

The 1040ES quarterly estimates are due April 15, 2019, June 17, Sept 16 and Jan 15, 2020.  Your state will also have their own estimate forms.

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2019 Estimate

Are you new to self employment?

Here is some general info.  You will need to keep good records.  You may get a 1099Misc at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small.  You might want to use Quicken or QuickBooks to keep track of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

[xmasbaby0]

No such thing as a "self-reporting hourly W-2 job." 

You need to be clear on how you are being paid and whether taxes, Social Security and Medicare are being withheld from your paychecks.  Look at your pay stubs.  Is anything being withheld?  If you are a W-2 employee that means the employer has to withhold federal and state tax, as well as Social Security and Medicare. 

if you are self-employed, you might (or might not) receive a 1099Misc showing the amount that was paid to you, but there would be nothing withheld for taxes, Social Security or Medicare.  When tax time rolls around, you would owe 15.3% self-employment tax for Social Security and Medicare AND ordinary income tax.

You can pay quarterly estimated taxes by getting 1040ES vouchers from the IRS web site and mailing in quarterly payments or you can pay directly on the IRS site.

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

https://www.irs.gov/payments/direct-pay