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Quarterly Taxes

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  • Quarterly Taxes

    This is my first year doing a little Locums on the side of my full time job.  I got paid $12K for it as a 1099.  I will be able to deduct a lot of that income as business expenses.  But, I've set aside $4K for taxes.  I estimate this is WAY more than I'll need, but hey, I'll make a little interest on my "tax refund" this year instead.  However, I do expect to pay more than $1K of taxes on that money.  Since this is my first year, do I need to file a quarterly estimated tax payment by Sep 15th?  What are the penalties if I don't? Thanks in advance.

  • #2
    Whether you need to make an estimate depends partly on how much you are having withheld from your paycheck. Are you an attending for 1/2 year and a resident for the first half or is this your first full year? Either way, you won't owe any penalties and interest as long as you withhold at least as much as your total tax liability (not the balance due after subtracting your amount withheld) for the prior year. This means that, in general, you should be safe to wait until 4/15 to pay the balance due.

    How Do I Figure Taxes for a Side Business?

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