My current situation:
Wife is finishing up residency, also moonlights
I graduated residency, currently partner/K1 and moonlighting
Did the estimated taxes for September 15th date but I feel like I did this wrong heading into paying the January 15th taxes.
I want to use the safe harbor rules with 110% applied. My wife and I file taxes jointly.
Our withholding last year was 11,459. Thus far, this year my withholding is 5670.43 (from Jan-June, plus some moonlighting with taxes withheld) and my wife's is 7465.23. Some quick addition would give you 13,135, which is greater than our withholding from last year.
Safe harbor would tell us that our amount to be paid each quarter would be [(last year's withholdingx1.1)-taxes paid this year]/2 or [(11,459x1.1)-13,135]/2 = -265!!!!
On September 15th I forgot to subtract the taxes we had already paid this year and ended up giving 3K to the fed and 1K to state. Any idea where to go from here...? Do I pay any amount for January 15th? Does it matter? It seems clear that we will have paid over the amount of the safe harbor rule. We have saved ~50K so far for when tax day rolls around.
Thanks for reading.
Wife is finishing up residency, also moonlights
I graduated residency, currently partner/K1 and moonlighting
Did the estimated taxes for September 15th date but I feel like I did this wrong heading into paying the January 15th taxes.
I want to use the safe harbor rules with 110% applied. My wife and I file taxes jointly.
Our withholding last year was 11,459. Thus far, this year my withholding is 5670.43 (from Jan-June, plus some moonlighting with taxes withheld) and my wife's is 7465.23. Some quick addition would give you 13,135, which is greater than our withholding from last year.
Safe harbor would tell us that our amount to be paid each quarter would be [(last year's withholdingx1.1)-taxes paid this year]/2 or [(11,459x1.1)-13,135]/2 = -265!!!!
On September 15th I forgot to subtract the taxes we had already paid this year and ended up giving 3K to the fed and 1K to state. Any idea where to go from here...? Do I pay any amount for January 15th? Does it matter? It seems clear that we will have paid over the amount of the safe harbor rule. We have saved ~50K so far for when tax day rolls around.
Thanks for reading.
Comment