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1099 Consulting

I?m an Illinois resident going through hell and I?m actively engaged in a job search. In 2012, my only source of income was premature

401(k) distributions. I?m in my fifth week of a six week 1099 consulting engagement, physically located at the client?s company. This is my only source of income for the year so far.

My research shows I need to file the following relative to the consulting: Form 1040-ES during 2013; Form US-1040 plus Schedule C plus Schedule SE, to filed April 2014; Form IL-1040-ES during 2013 and Form IL-1040 in April 2014.

Two questions, please: (1) Is that all I need to file (like it?s not enough)? (2) someone told me there?s a way to combine Form US-1040-ES and Schedule SE and pay that during 2013 but I cannot find any information about this. Is that true?

Thank you very much.

Reply to
JustMe
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Sounds right.

You pay all of your quarterly estimated tax with 1040-ES. You don't designate what's for what, you just send in the appropriate amount. You do need to allow for the SE tax along with everything else when you calculate and pay the estimated tax.

Schedule SE goes with the 1040 you file next April, as part of the calculation of how much you owe, just like every other schedule.

Reply to
John Levine

Dummies",

Thank you for your response. Is there a way to combine my estimated tax payment with the payroll tax payment (as represnted on form SE)?

Reply to
JustMe

In case you missed the previous messages:

A) Form SE tax is part of your income tax. If you have to pay estimates, it's part of your overall estimated tax, just like any tax that you computed on any other schedule of form 1040. You couldn't pay it separately even if you wanted to.

2) If you didn't owe any tax for 2012, you don't have to pay estimates. You will, of course, have to pay what you owe next April.

IRS Publication 505 explains this all fairly clearly:

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Reply to
John Levine

Dummies",

Thank you. Now I get it. Also, I did owe tax for 2012. The taxes were for premature IRA distributions taxed as ordinary plus the 10% penalty plus a little bank interest for the year.

Reply to
JustMe

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