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2017 Tax (estimation) Filing

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  • 2017 Tax (estimation) Filing

    It's tax (estimation) time! I've added all of our #'s into TurboTax for 2017, and have learned 2 things. (The wages, taxes, withholding, mortgage interest, taxable account income, etc are estimated for the rest of the year, but nothing difficult to compute.). We own the house we expect we'll be in for a decade or 2. Mortgage interest is significant, but so is the peace of mind in our backyard.

    I've been working a real job for many years, however 2017 is the first year my spouse will be earning an attending salary. We have some other income (rental income, tiny tiny 1099, etc). We made good progress, but haven't yet filled both of our HSAs (we each have one), nor 401k/403b/401a 's. We've given some to charity, but often see how our budget (and tax situation) look at the end of the year.

    1. We'll owe AMT (for the first time) in the amount of: $820

    2. We'll owe $5,777 in federal taxes.

    Does anyone have suggestions on:

    1. How to reduce taxes and AMT?

    2. How to avoid penalties this year (and/or next)?!?

    3. If penalties for underpayment, is the easiest way to resolve just to write a check to the IRS?

    4. If we have room left in an HSA, can we just transfer funds to hit the max there too?

  • #2
    1. Pretax contributions to retirement and HSAs, more to charity
    2. Likely no penalties due, but check IRS rules
    3. Yes, they just want their money
    4. Yes


    • #3
      Good news- AMT probably gone next year so this is the only year you'll ever pay it! Here's some older posts that may help you:
      Helping those who wear the white coat get a fair shake on Wall Street since 2011


      • #4

        Unlikely you will have a penalty for underpayment. As long as you prepaid at least 90% of your taxes or 100% of what you paid last year you will be fine. I have not run the numbers but I expect that I will be hit by AMT for the first time this year as well. For next year just make sure you are withholding at least what you pay this year.