Unemployed first quarter, got a 1099 contract job in April, how to file quarterly taxes?

[SanDiego25]

Got laid off from my W-2 job last year, was unemployed January through middle of April this year. Got a new job in the middle of April, but it's a 1099 contract position which means I now have to pay estimated quarterly taxes for both Federal and State (CA). I think I understand how to pay estimated quarterly taxes going forward, my question is - what do I do this year? I've already missed payment for Q1 since I didn't have a job back then and had no idea that the next one would be a 1099, not W2. Do I just calculate my estimated taxes for the remainder of the year, divide them by 3 and pay the next 3 quarters? What do I do at tax time so I don't get a penalty for not paying Q1 taxes at all? 

[Vanessa A]

No.  Your best thing to do is to just make the quarterly payment for the first quarter now.  Whenever a payment is "late" every day actually counts so it is better to pay now then to wait. 

[SanDiego25]

Unfortunately, due to being unemployed for several months, I literally can not afford to pay the estimated quarterly tax right now since I haven't made any income for the year yet. I am reading that there is some way to pay estimated quarterly taxes based on how much income you actually make each quarter rather than equal installments?

[SharonD007]

Yes, TurboTax will help you through informing the IRS that your income wasn't made in equal installments when you prepare your taxes next year. The federal tax system is a pay as you go system. As you make money, you have to pay taxes on that money. You may have an underpayment penalty if you didn't have enough taxes withheld from your income throughout the year.  

For more information, refer to the TurboTax help article Guide to IRS Tax Penalties: How to Avoid or Reduce Them.