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Quarterly Taxes Makes no Sense

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  • Quarterly Taxes Makes no Sense

    I'm doing my quarterly taxes for the first time.

    Half the year I had wages that were above 143k like 200k before I quit and went full 1099.

    But when I fill this out it, line 7 wants you to subtract your wages (200k) from line 5, which is 143k. So I have to pay 12.4% taxes on money i made over the 143k?? What the heck I already paid my 6.2% from wages why do i need to pay more taxes now? shouldn't i only have to pay the employer portion not employee and employer.


  • #2
    I’ve been paying quarterly taxes, accurately, for years, and I’ve never seen that worksheet. Yes you’ve maxed out SS. So just pay based on your marginal tax bracket (gets more complex obviously if you bump into higher brackets) and medicare. And if you’re uneasy just meet a safe harbor and figure it out later.

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    • #3
      Originally posted by Flapjacks

      oh i thought i only had to pay medicare and SS tax in quarterly taxes, not income?
      I don’t understand your question. The worksheet you posted seems to be only for the FICA/ self employment aspect of estimated taxes. You also need to pay regular federal income tax (estimated, based on your tax bracket).

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      • #4
        Originally posted by Flapjacks

        oh i thought i only had to pay medicare and SS tax in quarterly taxes, not income?
        Nope, look closer. That is only for calculating 2 lines of the estimated tax worksheet. What did your CPA say?
        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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        • #5
          So how do you decide whether you are going to post under Flapjacks or Craigslist? Flip a coin?

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          • #6
            Originally posted by Flapjacks

            oh i thought i only had to pay medicare and SS tax in quarterly taxes, not income?
            You'll need to pay ALL federal taxes quarterly (and state, too).

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            • #7
              Originally posted by TheDangerZone View Post
              So how do you decide whether you are going to post under Flapjacks or Craigslist? Flip a coin?
              How do you guys figure this out???
              Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

              Comment


              • #8
                Originally posted by jfoxcpacfp View Post
                How do you guys figure this out???
                Craigslist responded in a thread as the original poster. It was a thread that Flapjacks started. Their styles are also very similar..

                https://forum.whitecoatinvestor.com/...748#post286748

                https://forum.whitecoatinvestor.com/...878#post286878


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                • #9
                  Originally posted by abds View Post
                  I’ve been paying quarterly taxes, accurately, for years, and I’ve never seen that worksheet. Yes you’ve maxed out SS. So just pay based on your marginal tax bracket (gets more complex obviously if you bump into higher brackets) and medicare. And if you’re uneasy just meet a safe harbor and figure it out later.
                  What if my safe harbor was on w2 last year and now im gonna make more?

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                  • #10
                    Originally posted by Flapjacks View Post

                    What if my safe harbor was on w2 last year and now im gonna make more?
                    Then you’ll owe money in April. The safe harbor is so you don’t owe a penalty.

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                    • #11
                      Get a CPA. You are likely to screw this up. Why do you want this headache?

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