dont forget about state taxes too!! I got hit with a $900 penalty because I only did federal quarterlies my first year :

Great question! I went through this exact situation last year with my freelance writing business. Here's what I learned: You're on the right track with the self-employment tax calculation, but you'll also need to calculate the income tax portion. Since your household income is $310k, your consulting income will be taxed at your marginal rate (likely 32% federal). A simple formula I use: Take your net LLC profit × 0.9235 × 0.153 for SE tax, then add your net profit × your marginal tax rate for income tax. Don't forget state taxes if applicable. One thing that helped me was making the safe harbor payment - since your AGI is over $150k, pay 110% of last year's total tax liability divided by 4 quarters. This protects you from penalties even if you underpay slightly. Also consider maxing out business deductions: home office, business meals (50%), professional development, equipment, etc. Every dollar in legitimate expenses reduces your taxable income. The key is staying organized and setting aside money from each payment you receive rather than scrambling each quarter!

I'm in a similar boat with a partnership that files late every year. After going through the stress of estimating and amending returns multiple times, I finally switched to just filing extensions and it's been so much better. One thing I learned the hard way is that even if your estimates seem reasonable, partnerships can have unexpected items that throw everything off - like surprise distributions, changes in debt allocations, or one-time events that don't show up in your estimates. I had a year where my estimate was off by over $3,000 because the partnership had an unexpected property sale that generated significant capital gains. The extension route eliminates all that uncertainty. Yes, you have to wait longer to file, but you're filing with complete and accurate information. Plus, if you're getting a refund, the IRS pays interest on refunds for extended returns just like regular returns, so there's really no financial downside. My advice: file the extension, make a conservative estimated payment, and use the extra time to organize all your other tax documents. By the time your K-1 arrives, you'll be ready to file everything at once without any stress about amendments or potential penalties.

I've been dealing with late K-1s from my REIT partnership for the past 3 years, and I've tried both approaches mentioned here. Initially I used estimates with Form 8082, but ran into exactly the issues people warned about - my return got flagged for review and I had to provide documentation explaining why I was using the form for estimates rather than actual disagreements. The IRS examiner was understanding but made it clear that Form 8082 isn't really intended for "I don't have my K-1 yet" situations. She recommended the extension approach for future years, which is what I've been doing since. What really sealed the deal for me was when my partnership had an unexpected Section 199A deduction adjustment in year 2 that my estimates completely missed. That would have been a nightmare to sort out during an examination if I hadn't already switched to filing extensions by then. Now I just file Form 4868, pay about 110% of what I paid the previous year, and wait for the actual K-1. Much less stressful and no more worried phone calls from the IRS. The few extra months of waiting is totally worth the peace of mind.

make sure you have all ur docs straight before filing! The IRS been trippin lately with verification delays

Girl you're in for a nice surprise! With $4500 income and 3 kids, you'll definitely get way more back than you paid in. The EIC alone could be like $6000+ with 3 qualifying children, plus $2000 each for the two under 16 (Child Tax Credit), and $500 for your 17yr old (Other Dependent Credit). Make sure you file as Head of Household too - that'll save you even more! You're looking at potentially $10K+ refund easy. File early so you get your money faster! 💰

I'm confused about something - if the government knows ur making illegal money isn't that just admitting to a crime?? like if i put $50,000 in "other income" and I don't have a job, isn't that basically telling them im doing something illegal?

This is such an important topic that I think gets overlooked. I've been dealing with a similar situation where I had some cash income from freelance work that wasn't reported by the clients (they paid under the table). I was terrified about how to handle it properly. What I learned from talking to a tax professional is that the key is being proactive about reporting ALL income, even if the source might raise questions. Like others mentioned, you can use broad categories without getting into specifics that might be self-incriminating. The bigger risk is trying to hide income entirely - that's where people get into serious trouble with tax evasion charges. The IRS has gotten very good at detecting unreported income through data matching and lifestyle audits. It's much better to report everything and deal with any questions that come up than to try to fly under the radar. One thing I'd add is that if you're in this situation, it's really worth consulting with both a tax attorney and a CPA who understand these issues. The consultation fee is nothing compared to the potential consequences of handling it wrong.

Just wanted to add one more important point for F-1 students dealing with FICA refunds - make sure your employer processes the refund correctly through their payroll system rather than just cutting you a personal check. When I had this issue during my CPT, my employer initially wanted to just write me a personal check for the refunded amount. However, this would have created problems because they need to properly reverse the FICA withholdings in their payroll records and issue the corrected W-2c. If they just give you cash without fixing their records, the Social Security Administration will still show that you had FICA wages, which could cause issues down the line. The proper process is: employer files Form 941-X to correct their quarterly payroll tax filing, then issues you a W-2c showing the corrected amounts, and finally refunds you the money through their normal payroll process. This ensures everything is properly documented with both the IRS and SSA. Also, be patient with the 60-day timeline your employer mentioned - payroll corrections can be complex and often take the full processing period, especially if it's the first time their HR department has dealt with F-1 FICA exemptions.

Adding to all the great advice here - I went through almost the exact same situation during my F-1 CPT internship last year. One thing I'd emphasize is to make sure you understand the timeline for when your employer can actually get your money back from the government. Even after your employer files the corrected Form 941-X, it can take several additional weeks for the IRS to process their refund request before they can actually refund the money to you. In my case, the whole process took about 10 weeks from start to finish - my employer was very apologetic about the delay, but explained that they legally couldn't refund me until they received the money back from the government. Also, don't forget to report this internship income on your home country's tax return if required. Some countries have specific reporting requirements for income earned abroad, even if you're exempt from certain U.S. taxes. I almost missed this and had to file an amended return in my home country later. The silver lining is that once you get through this first experience, you'll be much better prepared if you do OPT later and need to ensure proper tax treatment from future employers.