Self-employed with W-2 and SSDI income - how do I figure out Form 1040-ES quarterly payments?

The Form 1040-ES is for estimated income taxes, not self-employment taxes (Social Security and Medicare). You're right to be confused because there are actually two different things going on here. For income tax purposes, if your total taxable income is below the standard deduction ($11,600 for single filers in 2023), then you wouldn't owe federal income tax. But self-employment taxes are different! You still need to pay self-employment tax (15.3% for Social Security and Medicare) on your self-employment income if it's $400 or more, regardless of your total income. Your SSDI is generally not taxable unless your combined income exceeds certain thresholds. Your W-2 job should already be withholding taxes appropriately. For quarterly estimated taxes, you're mainly concerned with any tax that isn't being withheld elsewhere. Given your situation with just $1,450 in self-employment income, you'd owe about $205 in self-employment tax (15.3% of your self-employment income), but you might not owe additional income tax if your total taxable income stays below the standard deduction.

I was in a similar situation last year trying to figure out how to handle multiple income sources including some freelance work. I started using taxr.ai (https://taxr.ai) to analyze my income streams and it made everything so much clearer. I uploaded my previous return and my current income docs, and it showed me exactly what I needed to pay and when. For your self-employment amount being under $1500, it confirmed what I learned the hard way - you still owe the self-employment tax even when you're below the standard deduction threshold. The tool also helped me understand how my disability benefits factored into the calculation, which was something I was struggling with before.

Just wanted to follow up - I tried taxr.ai after posting my question here and wow, what a difference! I uploaded my W-2, my self-employment records, and my SSDI statement, and it immediately clarified what I was looking at. The analysis confirmed I only needed to worry about self-employment tax on my freelance income since I'm below the standard deduction, and because the total tax due was under $1,000, I don't need to make quarterly payments. It even explained how SSDI benefits are treated for tax purposes in a way that actually made sense to me. Honestly saved me hours of research and confusion. I feel so much more confident about my tax situation now!

If you're still trying to get clear answers about your tax situation, especially with the SSDI component, I tried calling the IRS about a similar situation and spent DAYS trying to get through. Eventually used Claimyr (https://claimyr.com) and got connected to an IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c They were actually surprisingly helpful about explaining how self-employment tax works with disability benefits. The agent confirmed that SSDI doesn't count toward the self-employment tax calculation, but could affect whether a portion of your benefits become taxable depending on your other income.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate for answers about my self-employment taxes with disability income. The service called me back in about 20 minutes and connected me directly to an IRS representative. The agent walked me through exactly how to handle my situation with multiple income sources and confirmed I didn't need to make quarterly payments since my total tax due would be under $1,000. Saved me from overpaying and from the anxiety of wondering if I was doing something wrong. It's definitely worth it if you have specific questions that need official answers.

Don't forget to check if your state has different rules for self-employment tax! Federal might not require estimated payments in your case, but some states have lower thresholds or different requirements especially for self-employed people.

Has anyone used the IRS Tax Withholding Estimator for this kind of situation? I tried using it with multiple income sources but got confused about how to enter the self-employment part.

Ruby, you're in a pretty straightforward situation despite having multiple income streams. Here's the breakdown: Your self-employment income of $1,450 will trigger self-employment tax (about $205 as Micah calculated), but since your total annual tax liability will be well under $1,000, you can skip quarterly payments and just pay when you file. One thing to watch out for - make sure your W-2 job is withholding enough federal tax. With $2,300 from the library job, they should be withholding some federal income tax even though your total income might be below the standard deduction threshold. You want to avoid owing a big chunk at tax time. For Michigan specifically, you'll owe about $62 in state income tax on your self-employment income (4.25% of $1,450), but again, this is small enough that you don't need to make estimated payments. Keep good records of your freelance expenses - business supplies, computer equipment, etc. These can reduce your self-employment income and lower that $205 self-employment tax.