I recently was awarded a grant that pays my salary, but they do not take taxes out of my paycheck. This began July 1 and will continue for the rest of the year. How do I know how much to take out and where to file quarterly to avoid fees since it isn't for the full year? My yearly income would be around 56,000 if I had a full year salary, but everything before July taxes were taken out.
Hello avm108,
You are correct, you will need to make estimated tax payments to cover 7-1-2024 through 12-31-2024. You will need to calculate what your estimated tax will be for 2024 and the subtract what has been submitted so far as withholding. The balance left after subtracting withholding would be the amount you want to submit as estimated tax payments. You would then submit your 3rd and 4th quarter estimated payments to cover this amount. You can submit your estimated payments online at the IRS website or you can print the estimated voucher and mail it to the IRS with a check or money order.
TurboTax's Tax Caster tax calculator is a good tool to help you estimate your 2024 tax bill or if you may get a refund.
Here are some helpful links with additional information on how and when to make estimated payments.