Since I didn't have self employment income in Q1 or Q2, obviously I haven't made any estimated tax payments yet (just the normal W2 withholding up until 2 weeks ago). I've skimmed through the IRS forms for estimated tax, and it seems that at the end of the year, I am going to need to fill out form 2210, Schedule AI to indicate that I received my self employment income unevenly through the year.
This is fine... but that table looks like a nightmare to fill out. I will get around to it eventually (or maybe my tax software will ease the burden)... but by question is, for now can I just make my estimated tax payment based on a simple prorated amount of the totals I have calculated? That is...
- I'm reasonably confident that our total tax shortfall at the end of the year (considering all income sources, deductions, withholdings, etc) is $X
- I know how much 1099 income I will make in Q3, and how much I am expected to make in Q4.
- For my estimated tax payment for Q3 can I just make a payment of $X * (Q3 1099 income) / (Total expected 1099 income)?
As always, thanks for all the help.