Do I still have to pay tax estimate?

[khuong5791]

Hi,

Due to some personal reasons, until today, Oct 30, I have zero income from W2 (and I expect to have zero income from W2 until Dec 31). So far, I only have about $2500 from 1099 contract. Do I have to pay estimate tax? The reason why I ask is because I assumed that those who pay estimate tax are the ones who have income at a certain level for the year. Am I wrong? Pls advise.

Tks.

P

[Bsch4477]

Requirement for estimated tax payments has more to do with your tax liability than your income level. If that is your only income you don’t have to pay estimated tax. 

[quorumof1]

Who must pay estimated tax

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

Your income as given does not require estimated taxes, not until taxes owed exceed $1000

When revising calculations, Please don't forget self employment taxes on self employment.- Roughly calculated at 15.3% of self employment net income.

[SusanC6]

In considering whether to pay estimated taxes you would need to consider all your income and withholding for the year.  If $2500 will be your only income for the year and assuming you had no expenses related to the income, you would most likely not owe any Federal or State income tax.   However, you would owe Self Employment tax on the $2500.

Below is a link to an article that discusses Estimated Taxes that you may find helpful.

Estimated Taxes: How to Determine what to Pay and When 

[FranklinF]

Self-employment income, after expenses, is taxed at approximately 15.3%, and thus, tax planning should be made accordingly.

In addition, if your income reaches a certain threshold based on your filing status, additional tax planning (estimated taxes) should be made based on your filing status.

Tax year 2023 filing thresholds by filing status

Single	Under 65	$13,850
Single	65 or older	$15,700
Head of household	Under 65	$20,800
Head of household	65 or older	$22,650
Married filing jointly	Under 65 (both spouses)	$27,700
Married filing jointly	65 or older (one spouse)	$29,200
Married filing jointly	65 or older (both spouses)	$30,700
Married filing separately	Any age	$5
Qualifying surviving spouse	Under 65	$27,700
Qualifying surviving spouse	65 or older	$29,200

Tax year 2023 filing thresholds by filing status 

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