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1099 estimated taxes w/ W2 income

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  • 1099 estimated taxes w/ W2 income

    Hey all!
    ER doc here working as IC with full time W2 job and use both turbotax and quickbooks small business for taxes and bookkeeping. This is my first year needing to pay quarterly taxes (had safe harbor last year). Just wondering how accurate those are at predicting estimated taxes, both are estimating slightly different amounts. I assume using quickbooks estimation is better since I have everything on my business checking account and it is constantly updating expenses and business deductions in real time. My question is how blindly can I trust the quickbooks estimated taxes calculation vs filling out the IRS 1040-ES form to pay my quarterly taxes. Also, do I need to pay quarterly taxes to my state (California) as well? Quickbooks and turbotax only estimate my federal tax and have found very few calculators for estimated state payments.
    Thanks in advance for your time and responses!

  • #2
    I would trust quickbooks. But what I actually do is just pay enough quarterly taxes to meet one of the safe harbors. Then cry when I do my April returns & see (& pay) the owed balance. But I don't even try to keep up as I'm earning for the current year. I'm admittedly lazy.

    I have never lived or even traveled to California. But I'm betting, yes, quarterly payments are definitely required.

    https://www.ftb.ca.gov/file/when-to-...-personal.html

    Calculations:
    https://www.ftb.ca.gov/forms/2020/20...tructions.html

    "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

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    • #3
      “ER doc here working as IC with full time W2 job“

      explain this. 2 different jobs?

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      • #4
        ^^^ Can't say for sure, but several ER doctors in my hospital work full time for the ER group & on their off days work at an urgent care.
        "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

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        • #5
          https://www.irs.gov/individuals/tax-...ding-estimator
          Feel free to double check. Can't hurt.

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          • #6
            Did you pay any California taxes last year?
            I work in another state, and the safe harbor requirements are similar to the federal governments - 100% of last year's liability, or in my case, $0.

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