Help with estimating 1099 taxes, also have W2 income

[BigRedBeta]

So, long story short, picking up a few locum tenens weeks in 2018 to pay for infertility treatments.

Haven't been able to find an online calculator or a good rule of thumb to determine how much I should set aside for state/federal taxes when I also have sizable W2 income.

Anyone have any insights?

If it would help to have concrete numbers of what my W2 and 1099 incomes will be, let me know

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[ThoracicGuy]

So, long story short, picking up a few locum tenens weeks in 2018 to pay for infertility treatments.

Haven't been able to find an online calculator or a good rule of thumb to determine how much I should set aside for state/federal taxes when I also have sizable W2 income.

Anyone have any insights?

If it would help to have concrete numbers of what my W2 and 1099 incomes will be, let me know

When I had 1099 income, I set up a spreadsheet in excel to help me calculate. I used the IRS publications to set it up. There are two ways to calculate the amount, so I picked the one that best accounted for varied payments rather than just dividing it up as if my income was stable quarter to quarter.

Remember that you can set up a solo 401k with 1099 money and contribute both as an employee and employer. You are still limited to 18k employee contributions across all of your 401k/403b accounts per year. You can contribute up to 20% of your adjusted income as an employer from your 1099 funds as well. Plus it would give you a place to put your traditional IRA monies to allow for the backdoor Roth.

 

[BigRedBeta]

When I had 1099 income, I set up a spreadsheet in excel to help me calculate. I used the IRS publications to set it up. There are two ways to calculate the amount, so I picked the one that best accounted for varied payments rather than just dividing it up as if my income was stable quarter to quarter.

Remember that you can set up a solo 401k with 1099 money and contribute both as an employee and employer. You are still limited to 18k employee contributions across all of your 401k/403b accounts per year. You can contribute up to 20% of your adjusted income as an employer from your 1099 funds as well. Plus it would give you a place to put your traditional IRA monies to allow for the backdoor Roth.

Yeah, I know that there's *a lot* I could do, but with such a specific expense on a (hopefully) short timeline, I'd rather maximize my cash flow at the moment. Perhaps not the ideal scenario, but it's where I am at the moment.

 

[ThoracicGuy]

Yeah, I know that there's *a lot* I could do, but with such a specific expense on a (hopefully) short timeline, I'd rather maximize my cash flow at the moment. Perhaps not the ideal scenario, but it's where I am at the moment.

How much do you expect to make in 1099 money vs W-2 money? If the 1099 money is significantly less, your tax burden may be fairly small. I would still consider setting up a solo 401k, even if you only put a little in it so you have it going forward.

 

[Jules A]

Like ThoracicGuy posted you probably won't notice it if only a small amount for a short term gig and you have significant w2 income. I usually consider the amount of federal and state based on the percentage of income as well as the full boat on self-employment/FICA which I count at 15.9%.