Comments on: How to Calculate Quarterly Estimated Taxes

By: DC @ Young Adult Money

DC @ Young Adult Money — Mon, 09 Feb 2015 00:55:06 +0000

patriot202 Sorry for the late reply – I don’t get email notifications for comments on this post anymore. When I think of “expected side income” I think of the overall profit I will make as an employee, not the top-line “revenue” figure. For example, I have writers for Young Adult Money so I subtract that from my earnings. I also had freelance writing income in 2014 but had zero expenses to offset it, so I put the total on my 1099 in the “expected side income” bucket.

Hope that helps!

By: patriot202

patriot202 — Tue, 13 Jan 2015 03:24:06 +0000

I am working on estimating taxes for an income that my wife has where she is a 1099 employee. We both also have incomes where we have witholding and receive W-2s. I like the simplicity of the worksheets you have here. I do have one question. When you enter “Expected Side Income” in the second worksheet, is this simply the gross income that you have received for the year for the work on the side, or is this adjusted in any way? I have to say the 1040-ES explanations from the IRS are very complex to me. I will likely get the advice of a tax professional as well, but thought I would ask someone who has been through this already.

By: DC @ Young Adult Money

DC @ Young Adult Money — Tue, 15 Apr 2014 02:59:43 +0000

debtperception You can just file them under your name and social security number. I file jointly but I just file them under my name and SS. You could add your spouse on the payment stub but honestly it doesn’t matter because when you file jointly it all combines anyway.

If you plan on making $2k or more I would definitely consider making the payments. The Q1 payment is due tomorrow (needs to be in the mail) but if you miss that you can always start with Q2. Trust me, it helps come tax time! I would just take about 40% of what you think you will make and pay that in quarterly taxes.

Taxes aren’t fun and it’s difficult when you don’t know enough about them (trust me, I didn’t know what a quarterly tax was a little over a year ago!) but once you start looking into it and understanding it more you realize it can be simplified a bit.

By: debtperception

debtperception — Tue, 15 Apr 2014 02:11:29 +0000

I went to a tax place this year thinking I would have to start paying quarterly taxes but she said I didn’t need to. I guess I don’t make enough? Taxes are so confusing and scare me. I’m curious to know how one would pay quarterly taxes when married and filing jointly.

By: ImpersonalFinance

ImpersonalFinance — Tue, 25 Mar 2014 22:39:04 +0000

Thanks for the guide DC. I’m not self employed yet, so no quarterly taxes for me, but I will keep this in mind for the future! And I thought the disclaimer was awesome, btw.

By: Beachbudget

Beachbudget — Thu, 20 Mar 2014 21:52:47 +0000

My accountant sets this up for me, but speaking from experience from last year and not paying quite enough each quarter and having to owe way to much at the end of the year, I plan on reevaluating things each quarter. The joys of self-employment!

By: DC @ Young Adult Money

DC @ Young Adult Money — Thu, 20 Mar 2014 01:38:03 +0000

Miss Tightwad This is the year! It’s not nearly as complicated to get started as the IRS form makes it sound.