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Do I need to pay estimate quarterly taxes?

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  • Do I need to pay estimate quarterly taxes?

    Hi WCI world,

    New EM attending and new to the forum. Here is my situation - just finished residency this past June. From July-Aug I have been working 1099 at 2 jobs with approx 30K in income. I start a new full time W2 position this month and I'm not sure if I need to submit a 1040ES before the 15th. Would it make sense to just increase withholding at the new W2 position? I'll likely keep working 1-2 shifts every month as 1099 if this makes a difference. Thanks for the help!

  • #2
    As a resident, I would assume your income last year was less than $150k. In that case, as long as your total withholding this year is greater than or equal to your total tax due last year, there will be no underpayment penalty. By total tax due, I mean line 24 on your 2020 Form 1040.

    You will probably owe tax in April for your 1099 jobs, but there won't be any underpayment penalties.

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    • #3
      Right, read up on safe harbor rules OP

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      • #4
        on 30k, any penalty not covered by witholding wont be much.
        “. . . And the LORD spake, saying “First shalt thou take out the Holy 401k. Then shalt thou save to 20%, no more, no less. 20% shall be the number thou shalt save, and the number of the saving shall be 20%. 25% shalt thou not save, neither save thou 15%, excepting that thou then proceed to 20%. 30% is right out . . .””

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        • #5
          You should be within the safe harbor by doing nothing but you should do the math and confirm. You should also do a tax projection so you don't get any surprises come April.

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