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1099 Taxes

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  • 1099 Taxes

    I recently started making 1099 money last month, and will expect to make around $11,500 in contract money in 2017. My question is am I expected to start making quarterly estimated tax payments on Jan 15, or since I just started can I wait for my 1099 then file my 2017 taxes, probably in March-April? I can then start making estimate payments quarterly thereafter.

    Filing my taxes will help estimate my future payments, so I'm just trying to hold out till then without getting penalized. Thanks for the help!

  • #2
    if you also have a W2 this year you can just increase the withholding there.

    otherwise yes you start quarterly payments.

    as long as you meet safe harbor rule you shouldn't owe any penalties.


    • #3
      If your gross income without the net 1099 earnings is about the same as last year, just be sure you are on track to withhold at least as much as your prior year liability. If you are, then you should be fine to pay the amount due on the extra income when you file your income tax return. Just set aside about 1/3 of your IC income for taxes (will vary depending upon whether you are in a state/local area that has an income tax code).
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087