Hi all,
I've been scouring the forum for information on how people get started paying estimated taxes, but haven't been able to find a few of the answers I'm looking for, or ones that speak to my particular situation.
For context, I just started dancing this past summer, so the Sept 15 estimated tax due date is the first time I'll ever be paying quarterly taxes (or paying taxes as an independent contractor rather than an employee). Before that during this tax year, I worked as an employee, and had federal income, ss, medicare, and state income taxes taken out (and likely more than I owed since in the past with the number of deductions I claimed as a wage employee, I always got too large a refund ~$1k).
My questions:
1) Should I even try to pay estimated taxes this year, or just wait to start those if I am still dancing next year when I'll have more a sense of my estimated income? What are the likely costs to me (penalties at annual tax time vs lost interest now) either way?
2) If I were to pay estimated taxes now, how should I estimate them? Based on my earnings so far and how much I plan to work? Basically I have no idea how to fill out line 1 of 2013 Estimated Tax Worksheet.
3) I've yet to figure out what my obligations are for California income tax, so if anyone has any good general information on that, I'd love it. Also, a PM on this questions would be greatly appreciated!
4) When it comes to April, I'll have both taxes as an employee and as an independent contractor to pay, for two different states- any suggestions for how to handle this? Like computer tax programs that can handle both types and aren't too expensive.
5) The house mom at work gave me the name (apparently "big al", which sounded like a joke to me) of the tax guy strippers use, but I'm stubborn and want to do them myself like I have since I was 18. Any suggestions for websites or books that have helped you learn how to do this right? Like an idiots guide to small business taxes or something?
Thank you for any and all tips and guidance!



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