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New attending first quarterly, can I wait until April 15th?

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  • New attending first quarterly, can I wait until April 15th?

    My first attending paychecks (1099) starting coming in the 4th quarter of this year. I increased my witholding to offset some small 1099 income I was recieving during my final year of residency, and have already covered 110% of my tax burden for last year.
    My question is do I need to pay my 4th quarter taxes on January 15th? Or can I wait until April 15th due to this being my first year out and already withholding more taxes than I did last year?

    Thanks

  • #2
    If you've withheld enough to meet your safe harbor, you can pay the rest of what you owe on 4/15.

    You'll also want to make your first safe harbor payment for this year on 4/15, however.
    “Work” is a four letter word for good reason.

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    • #3
      Originally posted by Lithium View Post
      If you've withheld enough to meet your safe harbor, you can pay the rest of what you owe on 4/15.

      You'll also want to make your first safe harbor payment for this year on 4/15, however.
      When you say "safe harbor payments" do you mean quarterly tax estimate? Sorry, not well versed in this yet. Thanks

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      • #4
        Originally posted by hoosier View Post

        When you say "safe harbor payments" do you mean quarterly tax estimate? Sorry, not well versed in this yet. Thanks
        Yes.

        doesn’t sound like you need to or should pay any Estimated quarterly tax for 2020 on 1/15/21. Instead Just pay any remaining tax due on 4/15, but it sounds like that will be small

        also, plan on making 4 EQUAL payments each quarter start 4/15. However much you decide, making 4 equal payments is generally advised even if your income may fluctuate a bit. Note that second payment is due in June, not July.

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        • #5
          Does anyone else pay taxes monthly? It seems easy to keep up with this way for me, but wouldn’t be much harder for me to do it quarterly. My monthly intake fluctuates a bit and this has made it easier.

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          • #6
            Originally posted by TXDoc21 View Post
            Does anyone else pay taxes monthly? It seems easy to keep up with this way for me, but wouldn’t be much harder for me to do it quarterly. My monthly intake fluctuates a bit and this has made it easier.
            You can schedule your federal quarterly estimated taxes for the entire year. Doesn't get much easier than that.

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            • #7
              Originally posted by TXDoc21 View Post
              Does anyone else pay taxes monthly? It seems easy to keep up with this way for me, but wouldn’t be much harder for me to do it quarterly. My monthly intake fluctuates a bit and this has made it easier.
              From irs.gov/businesses: If it's easier to pay your estimated taxes weekly, bi-weekly, monthly, etc. you can, as long as you've paid enough in by the end of the quarter. Using EFTPS, you can access a history of your payments, so you know how much and when you made your estimated tax payments.

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