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Oh Crap! Do I owe quarterly taxes today?

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  • Oh Crap! Do I owe quarterly taxes today?

    This day totally snuck up on me, been super busy with 3rd year of residency and childcare.

    I started receiving a monthly stipend from my future employer in October 2018.
    I was payed in October, November and December, a total of 8,000.
    I'm also currently in Residency, with a resident's salary paid on W2.

    Am I on the hook for quarterly taxes due today, January 15th?
    Am I in "safe harbor"? Honestly don't understand this but have seen the term used on here.

    Any help would be appreciated!

    Thank you!

  • #2
    Most likely...not. But set aside ~$2k - $3k for 4/15 (depending on state). If you're not withholding enough from pay to equal or > last year's tax liability, you may owe an estimated payment. And if you're married with a working spouse, more complicated.
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • hoosier
      hoosier commented
      Editing a comment
      Thank you for the quick reply. Yes, married with part time spouse who will make only 35k this year.

  • #3
    learn about safe harbor.
    learn about adjusting your W4.
    depending on the numbers you might. or a penalty. or nothing.

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    • #4
      Yes, it seems the easiest course it to adjust my W4 for the remaining time at residency.
      Thank you!

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      • #5
        Originally posted by hoosier View Post
        Yes, it seems the easiest course it to adjust my W4 for the remaining time at residency.
        Thank you!
        Adjusting the W4 is typically the easiest to do and is nice since all payments are counted as paid throughout the year so you can withhold a lot the last few months, if needed.

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        • DMC
          DMC commented
          Editing a comment
          I never knew this - thanks!

      • #6
        Originally posted by hoosier
        married with part time spouse...
        I have many many questions. Most importantly, where can I find one???
        ___________________________

        If anything, make a late estimated payment. Tomorrow will only be 1 day late.
        "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

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        • #7
          Originally posted by hoosier View Post
          Yes, it seems the easiest course it to adjust my W4 for the remaining time at residency.
          Thank you!
          Just remember that this adjustment to the W4 will only be for 2020. The January estimated payment applies to 2019. Unfortunately, you may owe a small penalty, but it should be minimal. Live and learn.

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