Have Tax Questions? Ask a Tax Expert for Answers ASAP
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I want to give you the best answer possible so I need to ask a few more questions.
Do you know what tax bracket you are in normally? And do you have an idea of what your net profits from your freelance work will be for 2011?
I don't anticipate doing any more freelance work
So I think the total will be $600
and 15%, normally
is my tax bracket
Ok. Do you normally owe or get money back?
Get money back.
Your freelance work will be subject to Self Employment (SE) taxes. Let's assume you have no expenses so I can give you a worse case scenario example. So, you will owe approximately $75 for SE Tax. If your tax bracket is normally the 15% bracket, then your income tax will be approximately $90 for a total of approximately $135 for federal tax. Then depending upon your state tax bracket, that must to be considered. You are not required to make an estimate until you owe $1000 or more on your federal return. However, if you choose to send in an estimate, you can do so with the following form. http://www.irs.gov/pub/irs-pdf/f1040es.pdf Use payment voucher number 2 at the end of this linked document.
Am I required to make an estimate if my combined total income (freelance + non-freelance) is over $1000?
even if the non-freelance already has tax deducted from it?
No. Only the balance of tax that you owe the IRS. So, if you received a refund on your 2010 tax return, then unless you owe $1000 to the IRS for tax year 2011 (meaning you do not get a refund but actually have to pay them $1000) , you are not required to pay an estimate for 2011.
thanks so much, stephanie!