This year I will have W-2 income, 1099 income, and Social Security income. I know, come September, I will have to pay quarterly taxes on the 1099 income. In addition, I just received $12k payment from Social Security, with no taxes withheld. For future Social Security payments, I intend to have the federal taxes withheld, as there is a special form to submit to SS to do that.
From reading the 1040ES form, and from https://smartasset.com/retirement/color ... lHyNmnL7fl, it appears my 2020 federal taxes will increase approx $3k from the above non taxed SS payment.
From a previous poster/thread:
So, am I correct that I should pay quarterly taxes on both the 1099 income as well as the non-taxed Social Security benefits?FireAway wrote: ↑Wed Jan 23, 2019 3:44 pm There is generally a penalty and back interest owed for underwithholding. However, you don't have to pay the penalty if:
1) you owe less than $1000 additional (which seems to be the case here), or
2) your withholding was at least 90% of of your total tax bill for this year (you probably won't make this) or
3) your withholding was at least 100% of your taxes for the previous year ( you might hit this, if this is your first year with Lyft)
The way to avoid under withholding is to pay quarterly estimated taxes.
State taxes will increase a bit as well, so this would be mirrored on the state too.