Quarterly Payments

Post a reply

Smilies
:D :) ;) :( :o :shock: :? 8-) :lol: :x :P :oops: :cry: :evil: :twisted: :roll: :!: :?: :idea: :arrow: :| :mrgreen: :geek: :ugeek:
BBCode is ON
[img] is ON
[flash] is OFF
[url] is ON
Smilies are ON
Topic review
   

Expand view Topic review: Quarterly Payments

Re: Quarterly Payments

by Guest123 » Wed Feb 07, 2018 5:04 pm

CSMajor wrote:
Guest123 wrote:
CSMajor wrote:Who goes the route of quarterly payments? Do you estimate what you're going to make for the full year, or do you estimate it based off the stipend (25,000) and then adjust in the quarters we are paid our internship support?
When I was in phase 1, I did quarterly payments. If you don't, you potentially get hit with paying the government interest on not paying quarterly. I estimated for the full year, including the ISP for the summer. No need to adjust between quarters... You just have to pay taxes on the ISP before, during, and after the ISP. I think the ISP is enough income that they "might" come back for the interest they lost from you not paying enough quarterly. I believe there is a spot on the 1040 that leads you to another form if you didn't pay quarterly and is a pain to calculate how much back interest you would owe the government.
How much did you end up paying? My calculations show that I owe $2,000 per quarter which seems pretty high imho.
I may just readjust when I get the ISP since that's when I'll actually be earning that income.

I only had to pay federal taxes at the time because of both where my SF was and my state of residency. My quarterly federal taxes were around $1300 as a graduate student in 2014/2015.

Re: Quarterly Payments

by kbl2017 » Tue Feb 06, 2018 4:18 am

CSMajor wrote:
Guest123 wrote:
CSMajor wrote:Who goes the route of quarterly payments? Do you estimate what you're going to make for the full year, or do you estimate it based off the stipend (25,000) and then adjust in the quarters we are paid our internship support?
When I was in phase 1, I did quarterly payments. If you don't, you potentially get hit with paying the government interest on not paying quarterly. I estimated for the full year, including the ISP for the summer. No need to adjust between quarters... You just have to pay taxes on the ISP before, during, and after the ISP. I think the ISP is enough income that they "might" come back for the interest they lost from you not paying enough quarterly. I believe there is a spot on the 1040 that leads you to another form if you didn't pay quarterly and is a pain to calculate how much back interest you would owe the government.
How much did you end up paying? My calculations show that I owe $2,000 per quarter which seems pretty high imho.
I may just readjust when I get the ISP since that's when I'll actually be earning that income.

$8000 is way to high for federal taxes on $25000, is that after deducting the single person deduction of $10,400?

Then did you look at the tax tables? https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

Re: Quarterly Payments

by CSMajor » Mon Feb 05, 2018 10:42 pm

Guest123 wrote:
CSMajor wrote:Who goes the route of quarterly payments? Do you estimate what you're going to make for the full year, or do you estimate it based off the stipend (25,000) and then adjust in the quarters we are paid our internship support?
When I was in phase 1, I did quarterly payments. If you don't, you potentially get hit with paying the government interest on not paying quarterly. I estimated for the full year, including the ISP for the summer. No need to adjust between quarters... You just have to pay taxes on the ISP before, during, and after the ISP. I think the ISP is enough income that they "might" come back for the interest they lost from you not paying enough quarterly. I believe there is a spot on the 1040 that leads you to another form if you didn't pay quarterly and is a pain to calculate how much back interest you would owe the government.
How much did you end up paying? My calculations show that I owe $2,000 per quarter which seems pretty high imho.
I may just readjust when I get the ISP since that's when I'll actually be earning that income.

Re: Quarterly Payments

by Guest123 » Mon Feb 05, 2018 9:53 pm

CSMajor wrote:Who goes the route of quarterly payments? Do you estimate what you're going to make for the full year, or do you estimate it based off the stipend (25,000) and then adjust in the quarters we are paid our internship support?
When I was in phase 1, I did quarterly payments. If you don't, you potentially get hit with paying the government interest on not paying quarterly. I estimated for the full year, including the ISP for the summer. No need to adjust between quarters... You just have to pay taxes on the ISP before, during, and after the ISP. I think the ISP is enough income that they "might" come back for the interest they lost from you not paying enough quarterly. I believe there is a spot on the 1040 that leads you to another form if you didn't pay quarterly and is a pain to calculate how much back interest you would owe the government.

Quarterly Payments

by CSMajor » Mon Feb 05, 2018 8:54 pm

Who goes the route of quarterly payments? Do you estimate what you're going to make for the full year, or do you estimate it based off the stipend (25,000) and then adjust in the quarters we are paid our internship support?

Top