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Quarterly taxes for fellow transitioning to attending with prior moonlighting?

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  • Quarterly taxes for fellow transitioning to attending with prior moonlighting?

    thanks for the helps in advance as always guys . . .

     

    Made 30k this year for end of fellowship that ended 2 weeks ago (had normal taxes taken out)

    10k for moonlighting the first 6 months this year (had them take out the normal lower income tax rate they do plus $150 per shift)

    Wife made 20k for her job before quitting earlier this year (had normal taxes taken out)

    . . .

    Will start salary job for $350k in august

     

    Do you guys think I need to file quarterly taxes to avoid penalty etc?

  • #2
    ...you had taxes taken out? Does that mean you were employed? If that's the case, then you're not on the hook for quarterly taxes. Just have your employer withhold the appropriate amount.

    Figure out how much you'll owe for the whole year, then figure out how much that is each check, then on your W-4 withhold as single, no exemptions, plus whatever additional amount gets you there. The IRS online withholding calculator is helpful; there are also several others.

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    • #3




      thanks for the helps in advance as always guys . . .

       

      Made 30k this year for end of fellowship that ended 2 weeks ago (had normal taxes taken out)

      10k for moonlighting the first 6 months this year (had them take out the normal lower income tax rate they do plus $150 per shift)

      Wife made 20k for her job before quitting earlier this year (had normal taxes taken out)

      . . .

      Will start salary job for $350k in august

      Do you guys think I need to file quarterly taxes to avoid penalty etc?
      Click to expand...


      No estimates necessary and you won't owe penalty and interest by waiting to pay any balance due next April. As @DMFA said, you or your tax pro can run a projection to see where you stand tax-wise. This first half year as an attending, though, the shortcut would be to claim "Married but withhold at higher Single rate" on your W4 and set aside a few thousand dollars just in case you fall short on withholding next April.

      Because most first-year attendings will have higher taxable income than the previous year, the IRS doesn't require you to pay "in advance" as long as you withhold at least as much as your prior year's income tax liability. That should be fairly easy to do since you'll be withholding on much higher income for the last 5 months of the year. That rule will change to "you must withhold 110% of your prior year's income" as your income goes up, but you get a pass this year.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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