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In Fall 2024, I calculated the safe harbor by multiplying 1.1 by my total tax from 2023. I then looked at my paystub and extrapolated what I thought I'd pay in taxes through the rest of 2024, and it seemed like I was comfortably over the safe harbor amount. But as I'm doing my taxes now, TurboTax is saying I'll have a modest underpayment penalty. How can I improve the way I'm calculating my numbers so I don't incur another penalty next year? For example, maybe I didn't look at the correct lines on my paystub, or maybe I didn't factor in that some items get maxed out towards the end of the year, resulting in larger year-end paychecks? Or maybe there's some other way to avoid underpaying?

I am a graduate student who is filing taxes for a summer internship I performed in Summer 2024, and I have a question on the payment received by the company, as I received a 1099-NEC form. See below: Situation: This was a third-party startup company internship that was available through and partially subsidized by my school (stipend program for a summer internship experience if a company does not have the funds to fully compensate them, the school will provide a stipend / scholarship, so the total compensation is a certain amount). The school paid for a majority amount of $X (which was not part of the 1098-T, but I included under "Education - Other Scholarships/Grants/Fellowships", no questions here) and the third-party company paid for a portion $Y. I received a 1099-NEC, which is for independent contractors. Education component: I am a fully enrolled graduate student who takes classes full time throughout the year, with the exception of Summer 2024 for the internship. I am required to complete a 6–12-week full time summer internship as part of the work experience degree requirement and this work experience is a graduation requirement. Does this mean I should be exempt from self-employment FICA tax ("performs services as an incident to and for the purpose of pursuing a course of study")?  Employee vs. independent contractor component: Behavioral: Type and degree of instructions given: Had weekly check-ins to discuss work done and top priorities for the week; degree of instruction depended on task - some had little (e.g. email and reach out to X potential partners) and some had more direction (e.g. brainstorming together new initiative) Evaluation systems & training: Had an initial onboarding, then subsequent weekly check-ins and feedback on work done over the internship period Financial: Did not have significant investment, unreimbursed expenses, or opportunity for profit and loss (used personal laptop, occasional commute expenses) Services available to the market: I did not advertise, have a visible business location, or would work in this role otherwise (have not previously worked directly in this type of role). If I had not done this internship, I would have had to find another summer internship for work experience that may or may not have been similar to this role Method of payment was bi-weekly via bank transfer, totaling the flat $Y amount over the internship period Type of relationship: Written contract: I received an offer letter that explicitly states I have a full-time internship position with a start and end date who I report to and my responsibilities No employee benefits No expectation that the internship/work would extend beyond project time to a full time role Services provided as key activity: My work was presented as the company's own and I do not control or direct it Questions (and would appreciate any additional IRS guidance / verbiage for clarity if possible so I can double check that I am reporting correctly):  Should the third-party portion of the stipend be considered nonemployee compensation (e.g.  employee vs. contractor)? If not, what form should I have gotten / how should this be reported (e.g. within Education - Other Scholarships/Grants/Fellowships)? If the 1099-NEC is correct, how do I fill out the Schedule C as I technically was not operating a business or a sole proprietor practitioner? It requires me to fill out business information, code, accounting method, whether I issued payments requiring a 1099, etc.

I am in a unique situation as a substitute educator. I was offered health insurance through my employer, but it only covers me, not my husband. My employer began offering me insurance in October 2024, at which point my husband and I were already enrolled in an ACA plan and receiving a federal tax credit for it.   I have to pay some out-of-pocket costs for my employer’s plan, and since it only covers me, my husband remained on our ACA plan. Given that both plans overlapped for three months, how should I file my taxes? I received both a 1095-A and a 1095-B. Will TurboTax ask whether my husband was eligible for coverage under my employer’s plan, or can I simply indicate that only I was covered? I want to ensure that we were still eligible for at least part of the tax credit and that we don’t have to pay it all back. Thank you in advance for your help!