Just started new side gig have some tax qs

[fiveoh]

I just finished my first month of a new side gig and it looks like I'll be making 4-450 a month from it.(so estimated 4800-5400 a year)  I have a regular full time job and another side business(with ein) that barely makes anything(made $400 total last year), that I file a schedule C for.  Questions are:

1. Can I file this new income under my current EIN(even though the businesses aren't really related) or do I need to file it differently?

2. Do I need to pay estimated taxes on this income?  I plan on making enough tax deductible contributions to cancel out the additional income(I will get a small refund or owe a small a mount +/- $300) but I wasnt sure how that would work with SS and medicare. 

Anything else I need to look out for?

[MDM]

I just finished my first month of a new side gig and it looks like I'll be making 4-450 a month from it.(so estimated 4800-5400 a year)  I have a regular full time job and another side business(with ein) that barely makes anything(made $400 total last year), that I file a schedule C for.  Questions are:

1. Can I file this new income under my current EIN(even though the businesses aren't really related) or do I need to file it differently?

2. Do I need to pay estimated taxes on this income?  I plan on making enough tax deductible contributions to cancel out the additional income but I wasnt sure how that would work with SS and medicare. 

Anything else I need to look out for?

1) Don't know.

2) One good way to answer is to redo your 2015 taxes using your estimates for 2106 incomes, then adjust withholding from your W-2 job accordingly.  E.g., see http://forum.mrmoneymustache.com/taxes/best-way-to-calculate-w-4-exemptions-for-2016/.

[fiveoh]

I just finished my first month of a new side gig and it looks like I'll be making 4-450 a month from it.(so estimated 4800-5400 a year)  I have a regular full time job and another side business(with ein) that barely makes anything(made $400 total last year), that I file a schedule C for.  Questions are:

1. Can I file this new income under my current EIN(even though the businesses aren't really related) or do I need to file it differently?

2. Do I need to pay estimated taxes on this income?  I plan on making enough tax deductible contributions to cancel out the additional income but I wasnt sure how that would work with SS and medicare. 

Anything else I need to look out for?

1) Don't know.

2) One good way to answer is to redo your 2015 taxes using your estimates for 2106 incomes, then adjust withholding from your W-2 job accordingly.  E.g., see http://forum.mrmoneymustache.com/taxes/best-way-to-calculate-w-4-exemptions-for-2016/.

I basically did what you described in #2 and came up with owing 0 with my additional tax sheltered contributions.  However, that's fed income tax.  Do I not have to pay extra SS and medicare on my new side money?  Or do the extra 403b contributions reduce that by the same amount as well?

[MDM]

2) One good way to answer is to redo your 2015 taxes using your estimates for 2106 incomes, then adjust withholding from your W-2 job accordingly.  E.g., see http://forum.mrmoneymustache.com/taxes/best-way-to-calculate-w-4-exemptions-for-2016/.

I basically did what you described in #2 and came up with owing 0 with my additional tax sheltered contributions.  However, that's fed income tax.  Do I not have to pay extra SS and medicare on my new side money?  Or do the extra 403b contributions reduce that by the same amount as well?

Depends how close "basically did" is to "actually did".  The Self-Employment tax calculated for your business income is the extra SS and medicare you mention.  It goes on line 57 of Form 1040. 

If you accounted for that then you are all set with the feds.  If you didn't then you need to account for that.

[fiveoh]

2) One good way to answer is to redo your 2015 taxes using your estimates for 2106 incomes, then adjust withholding from your W-2 job accordingly.  E.g., see http://forum.mrmoneymustache.com/taxes/best-way-to-calculate-w-4-exemptions-for-2016/.

I basically did what you described in #2 and came up with owing 0 with my additional tax sheltered contributions.  However, that's fed income tax.  Do I not have to pay extra SS and medicare on my new side money?  Or do the extra 403b contributions reduce that by the same amount as well?

Depends how close "basically did" is to "actually did".  The Self-Employment tax calculated for your business income is the extra SS and medicare you mention.  It goes on line 57 of Form 1040. 

If you accounted for that then you are all set with the feds.  If you didn't then you need to account for that.

ahhh.  Gotcha.  I'll go back and actually run it in turbo tax then.  Thank you sir! 

[zephyr911]

I would not file this under an EIN established for an unrelated activity. You can put it on a separate Schedule C without having an EIN for that activity.

As for estimated payments, the book answer is yes, but you won't pay penalties the first year as long as your withholding is enough to cover last year's tax. Once you clock in with a higher income on your next return, you'll want to increase withholding or make estimated payments, or you will end up with penalties.