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    1099 tax question

    Hello, not sure this is the place for it, but have a quick question. Since January 2018 I've been a 1099/contractor. This is the first time I have not been a W-2 employee. I know I need to download a 1040ES form and pay taxes quarterly. My question is do I also have to pay state and city taxes quarterly? Also does the 1040ES cover both income taxes and self employment tax? Just trying to get a general understanding of what I need to do as I know Q1 taxes are due by April 15th. Thanks in advance!

    #2
    Off hand, I don't know for sure about the 1045ES. I'm useing the computer without the tax stuff on it. But I know as we are self-employed along with some 1099 income, we pay state estimated taxes for every quarter, but the weird thing is those estimated taxes don't come due quarterly like we think they would. If I remember right the 2nd quarter ones are due in June not July. We usually pay the same amount for state taxes for the estimated. Because our income is rather irratic, I pay the amount that I estimated that we earned per quarter for our local taxes.

    Our tax software (Turbo Tax) will tell us and print out the federal and state estimated forms for remittance. But that is based on your non W-2 income for the prior year. Not really sure how you do it when you switch like that at the beginning of the year. I'm not sure if that amount includes taxes and SS. I never even thought of it. The only thing we owe this year for taxes is SS for a 1099 that I got.

    Sorry I can't help more at this point. But I can say that yes, you need to pay quarterly estimated taxes for your state and locality unless your state and town have different rules that they go by, so a good idea to check with your state and town.
    Gailete
    http://www.MoonwishesSewingandCrafts.com

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      #3
      Originally posted by cologero View Post
      Hello, not sure this is the place for it, but have a quick question. Since January 2018 I've been a 1099/contractor. This is the first time I have not been a W-2 employee. I know I need to download a 1040ES form and pay taxes quarterly. My question is do I also have to pay state and city taxes quarterly? Also does the 1040ES cover both income taxes and self employment tax? Just trying to get a general understanding of what I need to do as I know Q1 taxes are due by April 15th. Thanks in advance!
      My understanding is the 1040ES covers your self employment tax. I have 1099 income and w-2 income and we use 1040ES. We also pay state estimated taxes. Can't speak to your city and state as I don't know where you're from.

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        #4
        I would look online and see if there is any guidance there for your state, city and local taxes. I noticed that my state has e-pay of estimated taxes through their web site.

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          #5
          Thank you for the replies everyone. I'll do some looking around online. I may just bite the bullet and purchase Turbo Tax.

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            #6
            Interesting. Called Jackson Hewitt and HR Block. Both said quarterly is not needed for this year and that I could file at the end of 2018.

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              #7
              Propably because you didn't have to do it last year you don't have to do it this year, but if you still have the same. I would still open an account and make those estimated payments into the account so that you won't have to dig so deep come tax time in 2019! Maybe you have plenty of cash all the time that can be used to give to Uncle Sam and his brother. I find it easier to tuck the money aside. I try to tuck 30% of any income into the tax accounts (which also have to help pay the property/school tax).
              Gailete
              http://www.MoonwishesSewingandCrafts.com

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                #8
                Originally posted by Gailete View Post
                Propably because you didn't have to do it last year you don't have to do it this year, but if you still have the same. I would still open an account and make those estimated payments into the account so that you won't have to dig so deep come tax time in 2019! Maybe you have plenty of cash all the time that can be used to give to Uncle Sam and his brother. I find it easier to tuck the money aside. I try to tuck 30% of any income into the tax accounts (which also have to help pay the property/school tax).
                100% agreed! And coincidentally, I've been saving 31% for future taxes.

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