Side job door dashing plus full time job

[KanM361]

Hello, can you please explain your question. Thank you.

[Corey6000]

This year I started the side gig door dashing in April I  Am concerned about quarterly taxes never had to pay them before. Am I required to pay quarterlies this year? Or can I wait untill tax time when my wife and i file our taxes then pay them then?

[Corey6000]

This year I started the side gig door dashing in April I Am concerned about quarterly taxes never had to pay them before. My wife and i both have full time jobs as well am I required to pay quarterlies this year? Or can I wait untill tax time when my wife and i file our taxes then pay them then?

[KanM361]

Yes, you will need to pay quarterly taxes this year on your door dashing work to avoid penalties when filing your taxes next year.

Following link may be helpful:

https://turbotax.intuit.com/tax-tools/calculators/self-employed/ 

Please let me know if you need any clarification on the above or have any additional questions.

[Corey6000]

I was told as long as it's your first year doing door dashing you are not required to pay quarterlies the first year. Do you know if that's correct?

[VolvoGirl]

The first year you don't need to pay estimates as long as you pay in (by withholding) as much as your tax was last year.  But if you will have a big income you should send in estimates so you don't owe too much next April on your tax return.  And if you end up owing too much tax on your return you may also have a penalty.

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).

Or you can increase your job withholding to cover the self employment tax.

[Corey6000]

We definitely should be paying third quarter and forth quarter quarterly taxes then. We have used Turbo tax software the last couple years.  Although this would be the first time using TurboTax Self Employment would we be able to login now to fill out the quarterly taxes on TurboTax Self Employment to make a coupon to send in with payment for third and fourth quarter this year?

[VolvoGirl · Accepted solution]

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

To just estimate the remaining quarters put in that you paid $1 for the missed quarters so it will only calculate the remaining quarters.

Or Here are the blank Estimates and instructions…..

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

The 1040ES quarterly estimates are due April 18, June 15, Sept 15 and Jan 17, 2023.  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.....2022 Estimate

[Corey6000]

Thank you!