I picked up a consulting job on the side and expect to have around 15K in revenue over the next 6 months. I'm assuming I need to make quarterly payments to the IRS based on my current tax bracket. The money will be paid to an LLC I established, but I don't expect to have a lot of expenses within the LLC that will reduce my tax burden.
Or increase withholding from your W-2 job to cover the extra tax liability and don't bother with quarterly estimated tax payments.
Should I just calculate the payments based on my current tax bracket?
No, because you will also have to pay self-employment tax.
Anything else I should consider?
Consider estimating your 2020 taxes now so you aren't greatly surprised when filing in 2021. The
Case Study Spreadsheet is one tool that will facilitate this. If you have tax software for 2019, it may have a "what if?" worksheet for 2020 estimates also.
