The internship that I am in right now pays me through untaxed stipends. The stipends will be taxed when I report them next year when I am doing my taxes. The stipend is in a pretty good lump, so I assuming so will the tax for it. Now, just so I don't get myself into trouble, is there any way to calculate based on last year's taxes, or my recent paystubs from the previous jobs, how much I should save up in preparation to pay the IRS when time comes?

For example, can I determine a percentage of my previous gross and taxes, then apply that percentage to the stipend?

spank ya :hugglez:

 

Take a look at:

http://www.irs.gov/publications/p505/index.html

Pay special attention to section 2. It gives some good pointers as to how to estimate your tax.

But in short, assuming that the stipend isn't enough to put you in a new tax bracket, you can take your withholding percentange and apply that to the stipend amount and make a quarterly payment to the IRS (via a 1040-ES ). If you wait until next year to pay them, they can hit you with a penalty if the amount is too high. The IRS likes to get their money as soon as you do.

Hope this helps...

 

it depends on how many you claimed on the w2?

save a good 15-20% of your income cause thats what uncle sam will take next year.

 

thanks for that link. theres a lot of information to absorb there. it looks like im going to be emailing them or heading to HR block for some questions.

this stipend is only for 10 weeks of work split into two. so a stipend every 5 weeks. and it wasnt my choice to withhold the tax. the stipend is for $6000, so i guess i would be paying at least $1200-1500 in taxes?

 

Are you still in school? Do you pay tuition?

 

call the IRS instead. They are very friendly and well shit knowledgeable about the tax laws

They will walk you through every step required to do what ever is that you need to do.

 

still no school. currently not enrolled for summer though. and i have financial aid that covers tuition only.

gotcha rick. imma give em a ring tomorrow.