Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Income tax question, overpaid via W2 started C2C
Old 10-22-2021, 03:34 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Aug 2013
Location: North
Posts: 4,031
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.
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
kgtest is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-22-2021, 03:53 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 13,202
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.
RunningBum is offline   Reply With Quote
Old 10-22-2021, 08:30 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Aug 2013
Location: North
Posts: 4,031
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.
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
kgtest is offline   Reply With Quote
Old 10-23-2021, 06:09 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2013
Posts: 1,879
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.
+1
mrfeh is online now   Reply With Quote
Old 10-23-2021, 06:31 AM   #5
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
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.
gauss is offline   Reply With Quote
Old 10-23-2021, 06:32 AM   #6
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
And does the C2C entity file Sch C or some type of partnership or corporation return?
gauss is offline   Reply With Quote
Reply

Tags
icnome tax


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Started late, started slow, but now starting to get FIRE religion Ready2Save Hi, I am... 22 08-16-2018 05:32 PM
Stream of income in 15 years, via "dorms" walleye FIRE and Money 31 09-08-2009 07:08 PM

» Quick Links

 
All times are GMT -6. The time now is 06:05 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.