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Moving in June to new state. Spouse is an IC. How to handle quarterly estimated tax?

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  • jfoxcpacfp
    replied
    Originally posted by GastroMastro View Post

    this is the most helpful. so i'll just pay Q1 and Q2 est taxes for State #1 (and NOT pay them anything Q3 Q4). and then just NOT do any federal estimated and just ensure I withhold 110% of my federal tax liability via my attending W2 job in the last 5-6 months of the year.
    Yes, this is what I would recommend. As long as you w/h the safe harbor fed, you can wait until April 2022 to pay any bal-due.

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  • Tim
    replied
    • If you expect to owe less than $1,000 after subtracting your withholding, you’re safe.
    • If you pay 100% of your tax liability for the previous year via estimated quarterly tax payments, you’re safe. If your adjusted gross income for the year is over $150,000 then it’s 110%.
    • If you pay within 90% of your actual liability for the current year, you’re safe.

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  • jacoavlu
    replied
    Originally posted by GastroMastro View Post

    I don't understand...
    you have not provided enough information for anyone to determine your safe harbor

    I would encourage you to learn about how the 110% number may or may not be your safe harbor number. And figure out your state rules.

    It's not complex.

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  • GastroMastro
    replied
    Originally posted by Tim View Post
    Is your question for state or federal?
    Federal safe harbor is independent of state. W-2 is the best way for federal.
    State is different. Clear up your state by the end of June.
    this is the most helpful. so i'll just pay Q1 and Q2 est taxes for State #1 (and NOT pay them anything Q3 Q4). and then just NOT do any federal estimated and just ensure I withhold 110% of my federal tax liability via my attending W2 job in the last 5-6 months of the year.

    Leave a comment:


  • GastroMastro
    replied
    Originally posted by jacoavlu View Post

    maybe
    I don't understand...

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  • jacoavlu
    replied
    Originally posted by GastroMastro View Post

    That’s my total tax liability (for all jobs) for 2020 X 110% right?
    maybe

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  • GastroMastro
    replied
    Originally posted by jacoavlu View Post

    your question can be precisely answered. You only have to meet the safe harbor amount. Do you know the safe harbor amount?
    That’s my total tax liability (for all jobs) for 2020 X 110% right? I can probably do that with my higher attending salary

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  • Tim
    replied
    Originally posted by GastroMastro View Post

    For federal that could work. But for state #1 might be harder since I don’t have as much time to do that, between now and June
    Is your question for state or federal?
    Federal safe harbor is independent of state. W-2 is the best way for federal.
    State is different. Clear up your state by the end of June.

    Leave a comment:


  • jacoavlu
    replied
    Originally posted by GastroMastro View Post

    For federal that could work. But for state #1 might be harder since I don’t have as much time to do that, between now and June
    your question can be precisely answered. You only have to meet the safe harbor amount. Do you know the safe harbor amount?

    Leave a comment:


  • CordMcNally
    replied
    Originally posted by GastroMastro View Post

    For federal that could work. But for state #1 might be harder since I don’t have as much time to do that, between now and June
    It's just an accounting issue, right? You're still planning on paying the money so instead of making estimated payments out of her IC income have that money taken out of withholding. I'm assuming that you're W2 so maybe my assumptions are wrong.

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  • GastroMastro
    replied
    Originally posted by jacoavlu View Post
    I would just handle this through withholding and not make estimated payments
    For federal that could work. But for state #1 might be harder since I don’t have as much time to do that, between now and June

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  • jacoavlu
    replied
    I would just handle this through withholding and not make estimated payments

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  • Peds
    replied
    estimated taxes are for the quarter you earned them in.

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  • Moving in June to new state. Spouse is an IC. How to handle quarterly estimated tax?

    Spouse will be making ~50k in first 5 months of year in State #1. Probably wont have a 1099 job in State #2. Thus, do we still spread out all 4 quarters of estimated taxes for State 1 using only the 50K income? Since all of this income is from State #1, I am assuming we wouldnt have to do any estimated taxes for State #2 right? Further, there is no role to just do estimated taxes for Q1 and Q2 to cover the entire liability of the 50k right?
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