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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29799
Experience:  Taxes, Immigration, Labor Relations
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My wife worked under 1099 months this year. April and May.

Customer Question

My wife worked under 1099 for two months this year. April and May. Till April she claimed unemployment. After May she has been on Maternity and not claiming unemployment. Does she need to pay taxes for the two months she worked now itself or can she wait till she files returns?If she needs to pay, how can she estimate since she is jobless now and will be looking for new jobs which might not be under 1099?
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.

In general - all taxes for 2015 are due by Apr 15, 2016
Whether she needs to pay estimate taxes - depends on total tax liability.
If you file a joint tax return - we need to consider TOTAL joint taxable income and total withholding.

Expert:  Lev replied 2 years ago.

Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment and other income.

The United States income tax is a pay-as-you-go tax, which means that you must pay tax as you earn or receive your income during the year. You can do this either through withholding or by making estimated tax payments. If you do not pay your tax or you pay an insufficient amount of tax through withholding, you might also have to pay estimated taxes. If you did not pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

If your estimates show that the tax liability is expected to be more than $1000 - your wife or you (if you file jointly) may ask to increase withholding from wages using form W4 and not pay any estimate taxes.
Let me know if you need help to estimate your tax liability and expected withholding.