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Quarterly taxes for freelancer?

By Terry Savage on February 22, 2019 | Economy & Taxes

Hi Terry!
Since I was laid off from my job of over 15 years, I’ve decided to freelance. 2 of my clients out of the gate have set me up with the paperwork to withold federal and state taxes just like they would a regular employee. But one client is sending me electronic deposits of the exact total of my invoices. I know that I should pay quarterly estimated taxes for freelance earnings, but I’m not sure if I need to do it if only a portion of my income is untaxed. I am also married and filing jointly with my husband who has a steady corporate job. Help!

Terry Says

Don’t get into a panic — but yes, a tax advisor (CPA) will help you set up a quarterly estimated tax payment to cover the amount owed from those full payments.  You are probably ok for the first few payments, but you are required to pay in 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.  Get going now on this project.

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