Last year I had W-2 income and 1099 income. I made $10,000 in real estate commissions. I believe I paid $1800 last year in 1099 tax, but none of it to the best of my knowledge was penalized. I filed an extension in April with $1,800 and filed taxes in July: I got $20 back.
On July 3, 2013, I quit my job that provided the W-2. It looks like I'll be making $15-20,000 of 1099 income this year. Do I need to pay estimated taxes? If so, how do I estimate my taxes? I had $10,000 from two jobs in real estate last year. This year, I have a few service contracts, which will probably bring in $15,000 and $10,000 of real estate commissions, but I'll only have half of the W-2.
Can I just pay the same amount of tax I paid last year from 1099 ($1,800) and wait until the end of this year to pay the rest? I'm told I have two options if I don't want to be penalized,
- Estimate to 10% of my income (which is impossible, I don't make much, 10% is a just two jobs.).
- Pay 100% of what I paid last year, and then pay the difference at the end?