You would need to report this as if you are self-employed, unless you wish to have the IRS contact your employer and require them to treat you as an employee, with a W-2.
In TurboTax Self-Employed, you would report this as General Business Income. You'll have to pay both income tax and Self-Employment tax (Social Security and Medicare) on this income. See the screenshot below.
You would need to report this as if you are self-employed, unless you wish to have the IRS contact your employer and require them to treat you as an employee, with a W-2.
In TurboTax Self-Employed, you would report this as General Business Income. You'll have to pay both income tax and Self-Employment tax (Social Security and Medicare) on this income. See the screenshot below.
Thank you for the clarification. Do I wait to pay these taxes during the 2018 tax season (when I file for this year's 2017 total earnings), or do I have to start paying for this year quarterly as I go along? And if so, can TurboTax help me with figuring out the percentages I need to pay? (for both self employment and income taxes)
Yes, you should make quarterly payments, called estimated tax payments. You can figure out (estimate) how much to pay in TurboTax Self-Employed, by going to the Personal Tab, then choosing Other Tax Situations, then scrolling down to Other Tax Forms and choosing Form W-4 and estimated taxes. You don't want to work on a W-4, but you do want to work on estimated taxes. It takes a little time to enter this information, so be patient. You can then print out 4 Forms 1040-ES to make quarterly payments. You can also make payments to the IRS electronically each quarter.
I went through it and entered my estimated earnings for the rest of this year. The results say that I don't need to make estimated tax payments in 2017. Is there a threshold amount you have to owe in order to even need to pay it?
Yes, you can make payments of any amount, but you can be subject to a penalty if you wind up owing $1000 or more in taxes. If you already have withholding that covers your taxes,you might not need to do it. Here's a link to more information: <a rel="nofollow" target="_blank" href="https://www.irs.gov/taxtopics/tc306.html">https://www.irs.gov/taxtopics/tc306.html</a>