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Paying taxes throughout the year?

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  • Paying taxes throughout the year?

    Hi everyone. I’m moving from residency to attending life. I’ve always done turbo tax and gotten a tax return. My income is jumping a lot and I only have deductions for two kids. I expect to pay taxes. I don’t understand how to figure out if I have to pay quarterly taxes this time around? Or should I just pay it all when I file it and then figure it out from there for the next year?

  • #2
    If you are still going to be a W2 employee, you will be fine as your payroll department will withhold appropriately as long as you fill out your W4 correctly. Even if you end up owing taxes you will almost certainly meet safe harbor given you will almost certainly had withholding for the year greater than 110% of 2021 tax due to the increased salary. However, If you are going to be self-employed you need to do some more reading.

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    • #3
      You'll likely overpay a bit because, if you fill out your W4 appropriately, the taxes will be taken out like you're making attending money all year. Do some reading about income taxes to get a good understanding of our things work. It sounds like your situation is pretty straight forward but it's always a good idea to have a working knowledge of your tax situation.

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      • #4
        Here is where you start:
        https://www.irs.gov/individuals/tax-...ding-estimator

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        • #5
          Does your spouse work, also? This could make the calculation a little more challenging because your income/tax bracket will be stacked on his/hers. As others have said, the odds are that you will be fine for withholding purposes. If you are claiming Married and any exemptions on your W4, it is more likely you will owe next April. If you claim Single and 0 exemptions, it is more likely you will get a refund next April. However, there is a lot of info we don’t know, such as whether you have 1099 income and any other impacts. Regardless, I don’t see a need for quarterly estimates.

          Welcome to the forum!
          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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          • #6
            Spouse doesn’t work and I have no additional income other than my job

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            • #7
              Originally posted by Linds2008 View Post
              Spouse doesn’t work and I have no additional income other than my job
              Then most likely, you will be fine, as mentioned above.
              • If you are straight W2, I’d probably go with Single -0- this first time around (bg with attending W4) and expect a refund. Then finesse next year, depending upon your results. No problem continuing with TT.
              • If you are straight 1099 (which is not what I expect based on your post), you’ll need to pay estimates to achieve safe harbor status. Use the estimator link Tim provided above and consider getting a CPA.
              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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