I need help and feel like a moron. I plan to consult a tax professional but first need to wrap my head around what I am supposed to do…
Background…
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I am married. We file married jointly. He makes $80K, I make $188K. We itemized this past year and got back about $1200. I think both of our W4s are still checked as single.
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I recently did a side job. Am going to be paid $16K in a couple weeks as an independent contractor.
So here’s where I’m lost and not sure what to do. I know (?) I will need to pay quarterly taxes on June 15. I plan to pay 30-35% of that $16K. I do not anticipate doing anymore side jobs this year.
If I don’t do anymore side work and only have my W2 job – is it likely that I’ll need to pay quarterly taxes again this year? I don’t want to be penalized for underpaying – would I maybe need withhold more from my paycheck?
I read some stuff online, confused myself and probably over complicated this entire situation but I don’t want to get myself in trouble with the IRS. Any advice is welcome. Thank you!
Posted by ampc90
6 Comments
The easiest way to avoid an underpayment penalty is to the meet the safe harbor requirement: withhold at least 110% of your prior year total tax (Form 1040, line 24) between your W-2 withholdings and estimated payments, distributed equally throughout the year. Just have enough set aside to pay the remaining tax when it’s due.
Be sure to check your state tax rules as well.
Look at your 2025 Form 1040, line 24.
Multiply this amount by 1.1. This is your Required Annual Payment.
In 2026, will your employers (both your and your spouse’s employers) withhold a combined total of federal income tax at least equal to your Required Annual Payment? If yes, you don’t need to make any federal quarterly payments (but will owe money in April 2027).
If no, then you need to pay the difference in quarterly payments.
Your state may or may not have similar rules with respect to state taxes.
And remember to make all payments using the name and SSN of the spouse whose name will appear first on your Form 1040 at the end of the year.
all you need to do is make a 1040 es payment by logging into your irs account and make a quarterly tax payment. You do not need to pay a tax professional to consult on this. So next year when you file your taxes, theres a section to include about any quarterly tax payments you made, so that will be factored in your return. I suggest paying 30 percent of the 16k as a one time payment
All three comments were very helpful and simple, thank you so much!
Since you received a refund this year won’t need to do estimates to avoid a penalty. Just have your balance paid next year by April 15.
Don’t beat yourself up; tax withholding with a side hustle is always a headache, especially with a high household income. Since this was a one-time thing, paying that 30-35% as an estimated payment by June 15 is a solid move to avoid penalties. You likely won’t need to pay quarterly again this year if your W-2 withholding stays consistent, but checking the “safe harbor” rules can give you some peace of mind.