The safe harbor protection is what you want to look into. If you pay 100% of last year's tax liability (or 110% if you earned over $150,000), you're protected from underpayment penalties even if you end up owing more when you file. Since this is your first job ever, if you had $0 tax liability last year, technically you could pay $0 in quarterly estimated taxes this year and not face penalties. But as others have said, you'll still need to pay the full amount when you file your return!

Another thing to keep in mind is that the IRS generally considers you to need quarterly payments if your self-employment income will be $400 or more for the year. But like others mentioned, there are several exceptions that might apply to you as a first-time contractor. Since you mentioned this is your first real job, you likely qualify for the "no tax liability last year" exception. Just make sure you understand what counts as "tax liability" - it's not about whether you got a refund or owed money, but whether you actually had a tax obligation after credits and withholding. I'd also suggest looking into whether you can deduct any business expenses related to your work-from-home setup. Things like a portion of your internet bill, home office space, computer equipment, etc. These deductions can significantly reduce your taxable income and might even push you below the threshold where quarterly payments would be required. Keep good records of everything work-related you spend money on - you'll thank yourself come tax time!

Just a suggestion - for small partnerships like your barbershop quartet, have you considered using FreeTaxUSA? It handles K-1s with various codes in their free version, including Box 20 codes. I used it for my small LLC this year and it didn't charge extra for any of the "complex" forms that other software wants to upcharge for.

As someone who's dealt with numerous K-1 forms over the years, I can confirm what others have said - Code AG in Box 20 is purely informational and doesn't require any action on your personal return. It's just the partnership reporting gross receipts for Section 448(c) purposes. The frustrating part is how tax software companies exploit these "complex-looking" codes to push expensive upgrades when most small partnerships don't actually need them. For a band with minimal income, you're likely only dealing with the basic income/loss items from Box 1. If you're set on using TurboTax, try continuing without entering the Code AG information - the software should allow you to skip it since it's not a required entry for your personal return. Alternatively, consider switching to a different software that doesn't nickel-and-dime you for standard partnership forms. Also, given that your band barely made money last year, you might want to discuss with your bandmates whether the partnership structure is worth the annual hassle of K-1s and partnership returns. Sometimes simpler is better for small creative ventures.

Have you checked if you're claiming the correct number of dependents? I was getting killed on taxes and realized I somehow had put "0" dependents when I should've claimed my child. Also double check that you're filing as "Married Filing Jointly" and not "Married Filing Separately" - that mistake cost me almost $5k one year!

Wow, this thread has been incredibly helpful! I'm dealing with a similar situation where my tax software is showing I owe way more than expected. Based on everyone's suggestions here, I'm going to: 1. Double-check all my W-2 entries for typos (especially withholding amounts) 2. Verify my filing status and dependent claims 3. Compare my actual W-2 withholdings to what I thought was being withheld all year It sounds like data entry errors and employer withholding mistakes are way more common than I realized. Emily, I really hope you get this sorted out - definitely check those paystubs against your W-2s like Ethan suggested. That could be the smoking gun! Has anyone else had success stories with getting these kinds of issues resolved? This is giving me hope that my $8k tax bill might not be real either.

This is such a relief to read! I'm currently in week 3 of the 570/971 waiting game (filed Feb 15th, codes appeared March 1st and March 3rd respectively) and was starting to panic that something was seriously wrong with my return. Seeing your timeline and everyone else's experiences gives me hope that this might resolve itself soon without me having to call and wait on hold for hours. The way you described it as "tax jail" made me laugh - that's exactly how it feels! I've been obsessively checking my transcript twice daily like it's going to magically change between morning and afternoon. Thanks for sharing your success story and giving the rest of us stuck in processing limbo some much-needed optimism! 🤞

This gives me so much hope! I'm currently on day 16 of my own 570/971 journey - filed January 30th, got the 570 on February 18th and 971 on February 25th. I've been checking my transcript religiously and starting to worry that maybe my situation is different from everyone else's. What really resonates with me is your description of checking the mailbox religiously for a notice that never comes - I've been doing the exact same thing! My mail carrier probably thinks I'm stalking them at this point 😂 The "tax jail" and "processing purgatory" descriptions are spot on. It's wild how the IRS can just freeze your refund without any real explanation and then magically release it weeks later. Thanks for sharing your timeline - it helps to know that even after 3+ weeks, things can still resolve on their own. Hoping to join the "571 club" very soon!

Has anyone else had their earned income credit amount change when they amended their tax return? I originally filed with just my W-2 income but then realized I needed to add my DoorDash earnings from last year, and it actually increased my EIC.

Just wanted to add that you should definitely keep good records of all your gig work expenses throughout the year! Things like phone bills (portion used for work), insulated bags for food delivery, and of course your mileage can all be deducted. Since you're getting the earned income credit, you want to make sure you're not missing out on legitimate deductions that could save you even more money. I use a simple spreadsheet to track everything monthly - makes tax time so much easier. Also, don't forget that as a student, you might qualify for education credits too if you paid tuition or had other qualifying education expenses!