Originally Posted by maconomist
I make most of my income with a W2. For the 2016 tax year, my AGI was $187,000, paid $33,000 in federal taxes and received a $400 refund.
This year I'm consulting and making some 1099 side income. I estimate I'll make ~$10,000 this year with very few business expenses (~$2,000).
Do I need to start sending estimated tax payments for 2017?
Thanks for your help.
Correct; however basically as you said, since you also receive salaries and wages, you may be able to avoid having to make estimated tax payments on your other income by asking your employer to take more tax out of your earnings. To do this, file a new Form W-4 with your employer.
Even if many small biz owners/self employers never pay estimated taxes and pay penalties plus interests when thy file returns in April of next the year, you actually need to pay estimated taxes aslongas you expect to owe at least $1k in tax for 2017, after subtracting your withholding and refundable credits; You do not have to pay estimated tax for 2017 if you were a U.S. citizen or resident alien for all of 2016 and you had no tax liability for the full 12-month 2016 tax year. You had no tax liability for 2016 if your total tax was s zero or you did not have to file an income tax return