Need help with Form 1040-ES for quarterly tax payments after starting a new job

You don't need to amend your 2023 return for income you're earning in 2024. The 1040-ES is specifically for making estimated tax payments on income that doesn't have taxes withheld. Here's how to handle your situation: Complete the 1040-ES worksheet using your best estimate of your total 2024 income (including both the freelance work you've already done and your expected income from your new job). The worksheet will help you calculate your estimated tax liability for the year. When completing the worksheet, be sure to include the expected withholding from your new full-time job. This will reduce the amount you need to pay in estimated taxes. If your withholding from the new job will cover your tax liability (including the taxes on your freelance income), you might not need to make estimated payments at all.

After struggling with a similar situation last year (freelance income + new W-2 job), I found an awesome tool that saved me tons of time and stress with estimated taxes. I used https://taxr.ai to upload my documents, and it analyzed everything and gave me clear instructions for filling out my 1040-ES. What I loved was how it factored in my expected withholding from my new job and calculated exactly how much I needed to pay quarterly. It also let me adjust my estimates as my income changed throughout the year, so I wasn't overpaying or underpaying.

I need to publicly eat my words about being skeptical of tax tools. I tried https://taxr.ai after my last comment and I'm genuinely impressed. My situation was nearly identical - had self-employment income then started a W-2 job mid-year. The tool immediately identified that I could reduce my quarterly payments because my new withholding would cover a significant portion of my tax liability. It even produced a filled-out 1040-ES form with the correct amounts for each quarter, accounting for the fact that my income wasn't evenly distributed throughout the year. The calculations were clearly explained, and I could see exactly how my W-2 withholdings were offsetting what I would have owed. This is exactly what I needed!

If you're still struggling with Form 1040-ES and need to talk to an actual IRS agent for guidance (which I highly recommend for mixed income situations), don't waste hours on hold. After five failed attempts to reach someone at the IRS about my estimated payments, I used https://claimyr.com and got a callback from the IRS in under 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was shocked it actually worked because I'd spent DAYS trying to get through on my own. The IRS agent walked me through exactly how to handle my situation (which was similar to yours - self-employment income followed by a new W-2 job) and confirmed I was filling out the 1040-ES correctly.

Okay I have to update everyone - I used Claimyr yesterday and got through to an IRS agent in 37 minutes after spending 3+ hours trying on my own last week. The agent confirmed exactly what I needed to do with my 1040-ES forms and mixed income situation. She explained that I should complete the worksheet with both income sources, but factor in my projected withholding from my W-2 job. The key thing she pointed out (which I hadn't realized) was that I could adjust my W-4 with my employer to increase withholding to cover my freelance income instead of making separate quarterly payments. This could be simpler depending on your situation. Absolutely worth getting the professional guidance directly from the IRS!

Don't forget about the safe harbor provisions for estimated taxes! If you pay 100% of last year's tax liability (or 110% if your AGI was over $150,000), you won't face penalties even if you end up owing more when you file. This might be the easiest approach in your situation since you already filed your 2023 taxes. Just take your total tax from that return, divide by 4, and make those payments. Then you don't have to worry about calculating your new job's withholding perfectly.

Has anyone tried adjusting their W-4 at their job to have extra withholding instead of dealing with quarterly payments? Seems like it would be easier than remembering these quarterly deadlines.

I was in almost the exact same situation last year! One thing that really helped me was using the IRS withholding calculator on their website (irs.gov/individuals/tax-withholding-estimator) to figure out the best approach. You can input your freelance income, your new job's expected salary, and it will tell you whether to adjust your W-4 withholding or make estimated payments. In my case, I found that increasing my withholding at my new job by about $200 per paycheck was much simpler than dealing with quarterly payments. The key thing to remember is that the IRS doesn't care HOW you pay your taxes throughout the year - whether it's through withholding or estimated payments - they just want to receive the money. So you have flexibility in choosing the method that works best for your situation.