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Went from W2 employee to 1099 Mid Year

I was a W2 employee up until June 1st.  Since then, I have been on contract (1099) month to month.  Will I get a penalty for not paying Q1 & Q2 estimates?  I only owed $100 on my 2022 taxes.  Since it's month to month, I'm not sure how long I'll be working there.  Can I easily adjust my Q4 payment if I move back to a W2 employee?

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Employee Tax & Finance Expert

Went from W2 employee to 1099 Mid Year

Your W-2 wages had taxes withheld by your employer.


You can make estimated taxes for the 1099 work at any time during the year. Remember, the schedule set by the IRS is a series of deadlines. You can always make a payment before a set date, and you can cover your entire liability in one payment if you want to. You don't have to divide up what you might owe into a series of four quarterly payments. So you can make the payments monthly if you chose based on the amount paid to you.

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Went from W2 employee to 1099 Mid Year

Thank you!  I just used the Tax Caster on Intuit for estimating.  Is the QBI deduction included in this calculation?

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