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Income tax question, overpaid via W2 started C2C
Old 10-22-2021, 03:34 PM   #1
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Income tax question, overpaid via W2 started C2C

So I have a quick tax question, I'm sure only a few google searches away but figured I would ask..

I am wrapping up a W2 job where I overpaid federal and state tax so far this year.

I am beginning a new C2C job where I will be paying my own quarterly "estimated" tax again...it's been almost a decade since using my C2C.

My question is I will owe about $6,000 of income tax to the IRS via C2C but since I already so far this year overpaid by about that same amount, do I still need to file a quarterly estimated tax by EOY for that C2C income? Or can I just wait and file what I owe in Q1/2022 instead of filing this last Q4 quarterly?

I figure paying income tax one way or the other is still paying income tax but I am not 100% certain on this. TIA.
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Old 10-22-2021, 03:53 PM   #2
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I have no idea what a "C2C" job is, but if you have withheld taxes equal to what you will owe at the end of the year, you're fine. No need to pay estimated taxes only to get them back.
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Old 10-22-2021, 08:30 PM   #3
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Thanks RB... I should have said I am billing Corp to Corp. Its a term in my industry used when I bill as a consultant via my S corporation to the companies S corporation.
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AA (Stock/Bond/Cash ): 97.5/0/2.5% MIX (Small/Mid/Large): 25/25/50% BLEND(US/Foreign): 100/0%, REIT (Real Estate Equity): ~50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 10-23-2021, 06:09 AM   #4
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Quote:
Originally Posted by RunningBum View Post
I have no idea what a "C2C" job is, but if you have withheld taxes equal to what you will owe at the end of the year, you're fine. No need to pay estimated taxes only to get them back.
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Old 10-23-2021, 06:31 AM   #5
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Do both entities share a common TIN/EIN?

Ie you the employee and whatever entity will be getting the C2C income and I assume 1099-NEC.

Not sure if it will effect the answer or not but I'm think it will help to frame the problem.
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Old 10-23-2021, 06:32 AM   #6
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And does the C2C entity file Sch C or some type of partnership or corporation return?
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