Odd Tax situation. Need advice. (pay, taxes, credit, income)

[SweepTheLeg]

OK, this gets kind of complicated, so bear with me.

Both my wife and I had standard jobs at the beginning of the year. We were both laid off within a month of each other. She got six months severance, I got none. The severance had a significant amount withheld in taxes.

We both got unemployment, both of us chose not to have unemployment taxed because we'd rather take the money now and figure it out at tax time (as we would get deductions for mortgage interest, property taxes, and child care. And yes, we kept our child in daycare while we were out of work - she had some challenges that she was making excellent progress on so we decided to keep her in rather than risking a regression)

Here's where it gets complicated:

I worked as an independent contractor for two different jobs in Q4 2014. I then got a new full-time taxed job, but continued to work as a contractor on a part-time basis.

I know I am going to be due to pay estimated taxes on 1/15. So my question is, am I paying taxes strictly on the independent contractor work, or will I need to pay on both the unemployment and the contractor work?

On top of that, can I pay more than what I'm guessing is my estimated tax and have it "work out" when "normal" tax time comes around on 4/15? Reason being is, I have an idea of what I'm going to owe when it comes to Tax Day, and I'd rather pay a majority of it now while I have the money than sit on it.

Thanks for your help!

[MrRational]

Originally Posted by SweepTheLeg

I worked as an independent contractor for two different jobs in Q4 2014.
I know I am going to be due to pay estimated taxes on 1/15.

Nah. The 1040 should be soon enough to report that and to pay the SE taxes.

...will I need to pay on both the unemployment and the contractor work?

UE is taxable income

I have an idea of what I'm going to owe when it comes to Tax Day,
and I'd rather pay a majority of it now while I have the money than sit on it.

Grow up. But you can or should be able to file very soon in any case.

[Gandalara]

Originally Posted by SweepTheLeg

I know I am going to be due to pay estimated taxes on 1/15. So my question is, am I paying taxes strictly on the independent contractor work, or will I need to pay on both the unemployment and the contractor work?

On top of that, can I pay more than what I'm guessing is my estimated tax and have it "work out" when "normal" tax time comes around on 4/15? Reason being is, I have an idea of what I'm going to owe when it comes to Tax Day, and I'd rather pay a majority of it now while I have the money than sit on it.

Thanks for your help!

The estimated taxes are due for the independent contractor income.
You can pay for the unemployment income, if you want. Not required on estimated quarterly taxes. It will be taxed when you do your 1040.
You can pay more if you want.
But you may pay too much, with the stretch of unemployment and your deductions.

I would figure it as close as possible not to pay penalties. I'd rather sit on the money than let the government have it early, LOL

[Spaten_Drinker]

Originally Posted by SweepTheLeg

OK, this gets kind of complicated, so bear with me.

Both my wife and I had standard jobs at the beginning of the year. We were both laid off within a month of each other. She got six months severance, I got none. The severance had a significant amount withheld in taxes.

We both got unemployment, both of us chose not to have unemployment taxed because we'd rather take the money now and figure it out at tax time (as we would get deductions for mortgage interest, property taxes, and child care. And yes, we kept our child in daycare while we were out of work - she had some challenges that she was making excellent progress on so we decided to keep her in rather than risking a regression)

Here's where it gets complicated:

I worked as an independent contractor for two different jobs in Q4 2014. I then got a new full-time taxed job, but continued to work as a contractor on a part-time basis.

I know I am going to be due to pay estimated taxes on 1/15. So my question is, am I paying taxes strictly on the independent contractor work, or will I need to pay on both the unemployment and the contractor work?

On top of that, can I pay more than what I'm guessing is my estimated tax and have it "work out" when "normal" tax time comes around on 4/15? Reason being is, I have an idea of what I'm going to owe when it comes to Tax Day, and I'd rather pay a majority of it now while I have the money than sit on it.

Thanks for your help!

I would wait and file all of the taxes at one time. Your deductions and credits may be more than what your 'estimated taxes' are for your contractor work. Your total tax liability for the year may already have been met. The worse case scenario is you owe a few hundred bucks on April 15. There is no penalty unless it is more than a certain percentage of your entire tax bill.