self-employed but not consistent

[BTW]

Hi. I am 52 and only work a small portion of the year. For example, I did a small project this spring and got paid but have not worked again since then. Do I still need to make quarterly payments when I don't know what my income will be or when I may receive it?

[Gabriella_EA]

Hello @BTW!

Thanks for this great question! Ultimately, whether or not you need to make quarterly estimated tax payments is dependent upon how much tax you expect to owe at the end of the year, which is dependent on your overall income for the year. One of the best ways you can determine whether or how much you'll owe at the end of the year is to use our TaxCaster tool. Be sure to include all your income for the year when determining if you'll owe, and therefore how much to pay.

If, for example, at the beginning of the year you worked that one project and it's not enough income to generate a significant balance due for you, you may choose not to pay estimated tax payments based on that project alone. If you happen to take another project or two down the road and your income and tax situation changes, you can always start making quarterly payments once you've made that additional income.

Note that if you do make a payment and it's an overpayment of what you actually owe, you can file your tax return to claim a refund of the overpaid taxes.

[Paul_W1]

To BTW,

Your original replier Gabriella did a great job with assisting you for estimate taxes using taxcaster tool.  When you use turbo tax next year 2023, and you made any estimate payments be sure to include those amounts if any.  Estimates will be similar to the withholdings that get deducted out the paychecks and appear on W-2, box 2. 

Any estimates you make will appear on the 1040, line 26.