help me pls

General Discussion for SMART Scholarship Recipients

help me pls

Postby taxhelp » Sat Dec 22, 2018 12:11 am

hi guys. does anyone know when/how we have to report our taxes or pay quarterly or whatever? how do you do that? thank you
taxhelp
 

Re: help me pls

Postby CSMajor » Wed Dec 26, 2018 9:02 pm

You pay quarterly before April 15th, June 15th, September 15th, and January 15th. You basically take what you expect to owe by the end of the year and divide it by 4 then pay. (As a BS making the 25k stipend, 12k internship, and roughly $16k in school refunds from other scholarships) I ended up paying around $1000 per quarter (thank you tax reform!)

Your mileage will vary and I still expect to owe some this year, but hopefully no more than $500-600.

https://www.irs.gov/payments

Remember, you are not self employed so consult your CPA about making sure your stipends are taxed correctly.
CSMajor
 

Re: help me pls

Postby LostinCyberspace » Wed Dec 26, 2018 9:49 pm

CSMajor wrote:You pay quarterly before April 15th, June 15th, September 15th, and January 15th. You basically take what you expect to owe by the end of the year and divide it by 4 then pay. (As a BS making the 25k stipend, 12k internship, and roughly $16k in school refunds from other scholarships) I ended up paying around $1000 per quarter (thank you tax reform!)

Your mileage will vary and I still expect to owe some this year, but hopefully no more than $500-600.

https://www.irs.gov/payments

Remember, you are not self employed so consult your CPA about making sure your stipends are taxed correctly.

So, first year taxes are due in April? (I was also self employed this year, so I know those taxes will be due in January.)
LostinCyberspace
 

Re: help me pls

Postby littleconfused » Fri Dec 28, 2018 4:16 pm

CSMajor wrote:You pay quarterly before April 15th, June 15th, September 15th, and January 15th. You basically take what you expect to owe by the end of the year and divide it by 4 then pay. (As a BS making the 25k stipend, 12k internship, and roughly $16k in school refunds from other scholarships) I ended up paying around $1000 per quarter (thank you tax reform!)

Your mileage will vary and I still expect to owe some this year, but hopefully no more than $500-600.

https://www.irs.gov/payments

Remember, you are not self employed so consult your CPA about making sure your stipends are taxed correctly.


If we are still in school receiving stipends, do we have to pay quarterly? Or can we pay once a year and be okay?
littleconfused
 

Re: help me pls

Postby Guest1234 » Sat Dec 29, 2018 9:05 am

littleconfused wrote:
CSMajor wrote:You pay quarterly before April 15th, June 15th, September 15th, and January 15th. You basically take what you expect to owe by the end of the year and divide it by 4 then pay. (As a BS making the 25k stipend, 12k internship, and roughly $16k in school refunds from other scholarships) I ended up paying around $1000 per quarter (thank you tax reform!)

Your mileage will vary and I still expect to owe some this year, but hopefully no more than $500-600.

https://www.irs.gov/payments

Remember, you are not self employed so consult your CPA about making sure your stipends are taxed correctly.


If we are still in school receiving stipends, do we have to pay quarterly? Or can we pay once a year and be okay?


Yes. You have to pay quarterly, otherwise the IRS can tack on a penalty for not doing so and get interest on what you were supposed to be paying.
Guest1234
 

Re: help me pls

Postby confused » Mon Jan 07, 2019 1:24 pm

wait so if we are in our first year of the scholarship meaning we have only been receiving payments since august... do we owe money by January 15? thanks for the help!
confused
 

Re: help me pls

Postby SmartParent » Mon Jan 07, 2019 8:53 pm

confused wrote:wait so if we are in our first year of the scholarship meaning we have only been receiving payments since august... do we owe money by January 15? thanks for the help!


Yes you generally need to pay quarterly and the last quarter is due January 15th but you may be able to just pay when filing your taxes in April if you meet the "safe harbor" requirements. (You might try googling the terms: estimated taxes safe harbor 2018.) However, for the next year you will almost certainly need to be making quarterly estimated tax payments.
SmartParent
 
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