Do quarterly tax estimates have to all be the same?

[gauss]

My daughter is now working 2 jobs that are 1099 positions so she has to file quarterly estimates. I have no experience dealing with that as I’ve never needed to do it for us.

She really can’t predict today how much she will make for the year. Do all 4 quarterly estimates need to be the same or can she adjust the amounts each quarter as her income picture becomes clearer?

Thanks for any advice on how to do this.

No the payments are not required to be the same, but the tax return calculation will be more complicated if they are not. See IRS form/instructions 2210 for details. In effect you end up doing what feels like 4 tax returns instead of 1 to verify that you were current with your withholding/estimated payments each quarter to avoid penalty/interest. There are safe harbors that may be available so this may be mute.

-gauss

 

[JoeWras]

The older I get, the more simple I'm trying to make things. I'm just getting tired of irritations like form 2210. I used to embrace them as a challenge.

Since OP says daughter will likely make about 1/2 of 2025, I personally would take 80% of 2025's tax liability, divide by 4, and pay four equal quarters. This is not safe harbor, but for her expected income it should be plenty, unless she has a windfall. If she has a windfall, late in the year, she can back load it and do form 2210. The early quarters should still track, assuming she's going at a rate of 1/2 of last year and income is not front loaded and lumpy.

 

[audreyh1]

The daughter also has the option to review by late Q4/start of Jan if she has already paid sufficient taxes to cover 90% of her current year tax liability in estimated tax payments and skip the fourth estimated tax payment entirely or just enough to meet that 90% safe harbor.

 

[Texas Proud]

I guess some folks don’t understand that she is self-employed.

Yep, understood but she might have a gig job where they do take out taxes... it does not hurt to ask..

My DS had a few gig jobs when attending college and one did take taxes..