How much estimated tax do I owe on the taxable part of my fellowships?
January 29, 2009 by Tax Blog
Filed under Questions & Answers
So I am a grad student and i’ve received some fellowships for the coming academic year. They are as follows:
$7500
$10530
TOTAL: $18300 (all of it taxable because it will go toward living expenses)
So, according to my calculations for Federal Estimated Tax (form f1040es), my standard deduction is $10,700 (married filing jointly) and I can claim two personal exemptions, one for myself and one for my husband: $6800. The total amount I can deduct from my gross income is therefore: $17500.
Thus, subtracting $17500 from $18300 = $800 in taxable income. I would therefore not have to pay any estimated tax because the amount is below $1000. This just doesn’t seem right to me. That would essentially mean that i would be walking away with $18300 tax free. Also, I have a salaried job that I’ve netted $12000 from and the federal govt has taken out about $3000 from. Can somebody please explain this tax mystery to me?
Thanks!
I also have a salaried job that has withheld taxes. Do I have to take this into account when I list my gross income on the estimated taxes form? I thought that gross income on the estimated taxes form was only for income that has not been taxed.