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When do I pay estimated taxes as mid year independent contractor?

I left an employer mid 2016 and will receive a W-2 from them.  In early September 2016 I began working as an independent contractor.  Do I need to pay estimated taxes on my independent contractor earnings for the September through December earnings by Jan 15 of 2017, or can that be included on my full year taxes filed by April 15?

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When do I pay estimated taxes as mid year independent contractor?

The obligation to pay Estimated Tax is dependent on whether or not you will have paid, through withholdings,  at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.  A larger percentage of 100% of current year tax is required for those whose Adjusted Gross Income is $150,000 or more.

So, if all your withholding  tax sums to either the 90% of this year's obligation or 100% of what you actually paid in the prior year, you are not obligated to make an Estimated Tax payment.

If you have to do so, you should make that payment by January 15th so as to meet one of those two percentages.  The April 15th payment amount is intended for any obligation over that 90%, as above.

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3

- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.
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