1099 Taxes

[DoctahB]

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Hey all, new to the locums game (1 month to be exact) and therefore new to the 1099 taxes game... I've tried doing my research on this but the most I can find is one should try to pay their taxes quarterly, the amount being based on documents that I don't have.

Yes, I will be consulting with an accountant in the future; but, as September 15 is looming ever closer, figured I'd curbside some other 1099 people who were also once new.

Thank you in advance!

Bonus question: where do you set aside the money you intend to pay in taxes? I'm a bit hesitant to invest it in the market vs just store it in a "high yield" savings account for some very minimal interest.

 

[cabinbuilder]

I worked 1099 for 7 years. I never paid quarterly. I put money in a separate savings and paid at the end of the year.

 

[jwk]

I worked 1099 for 7 years. I never paid quarterly. I put money in a separate savings and paid at the end of the year.

Then you just haven't been caught yet, or you're covering yourself through withholding with your regular W-2 employer. If you under-withhold, you're subject to penalties and interest. I found out the hard way.

 

[sloh]

I worked 1099 for 7 years. I never paid quarterly. I put money in a separate savings and paid at the end of the year.

Missing quarterly deadlines, even by one day, can mean accruing penalties and interest.