Taxes

General Discussion for SMART Scholarship Recipients
InfoSec Guru

Taxes

Post by InfoSec Guru »

Has anyone figured out how to report or pay the taxes yet?

Ed

Re: Taxes

Post by Ed »

Looks like we will have to put aside about 15% of what we get paid, until we file our taxes, we send it to the IRS as one lump sum.

Does anyone know when will pay checks show in our bank accounts? Is it before or after the weekend?

hjk241

Re: Taxes

Post by hjk241 »

On the subject of deposit: I came off a research assistant line this month that direct deposited every other Friday. Normally that would post Friday morning in my account and show up Thursday as a pending transaction. That being said, I have not seen any deposit or pending transaction yet... got me a bit concerned...

guest2011

Re: Taxes

Post by guest2011 »

I too have not seen any activity in my bank account, so I am a bit concerned. Regarding the 15% for taxes, I would put aside more than that. With the summer pay for say 10 weeks and even with the lowest pay grade, you are looking at 37,000 for the year. For everything you make above 34,500 you pay 25% in taxes. That means you pay 25% on about 2500 but 15% on between like 8k and 34,500. (meaning once you add it up, yes 15% is fine for federal, but then you have to pay state and local taxes on top of that). If you make even more than that, say you're a grad student or even have completed your qualifying exam, with the weekly pay for the summer internships, you could make about 48000. In this case, you would pay about 17% of your total (once you add it up) and still have to pay state and local (for me the state is like 4 or 5% and local is 3%). Play it safe and save at least 23%, but Im personally saving more. If you have left over once you pay taxes, consider it a tax refund :-)

empty

Re: Taxes

Post by empty »

All good discussion and thoughts. My deposit has shown up as a "processing" transaction with Wachovia saying its "available".

Guest

Re: Taxes

Post by Guest »

I currently see my payments as a pending transaction.

Also, I wouldn't just "put aside" the money and pay it as a lump sum at the end of the year. I'd suggest filing quarterly, otherwise they'll penalize you and charge you interest for not filing quarterly.

Here are the quarterly due dates: http://www.lni.wa.gov/ClaimsIns/Insuran ... /DueDates/. You can avoid the last quarter if you file your taxes for the year before January 31st.

guest2011

Re: Taxes

Post by guest2011 »

Really? My Wachovia says nothing. Uh Oh now Im very worried.

On a side note, are we taxed on the tuition they pay for us?

Guest

Re: Taxes

Post by Guest »

guest2011 wrote:On a side note, are we taxed on the tuition they pay for us?
Tuition is the only thing that isn't "taxable" (i.e. it won't show up on the 1099-MISC). However, if you are doing itemized deductions, you may be able to deduct book money and parts of internship support payments.

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