Hello everyone,
I accepted a fellowship with ORISE with an annual stipend of about $55,000. I was looking into how to calculate the taxes I would have to pay, since federal, state, medicare, and social security will not be withheld. I know that I would have to fill out the 1040 ES form and pay quarterly.
According to the 2017 Tax Rate Schedule, I would be in the third bracket ($37,950-$91,900). Does this mean that I would have to pay 25% of my earnings ($55,000) in addition to the $5,226.25?
(0.25*55,000) + 5,226.25 = 18,976.25
If this is the case, does this mean I would have to pay quarterly $4744.06? That's insane that my taxes would be over 33% of my stipend.
Here is the document that I used to guide my calculations: http://ift.tt/1hRKe79
Submitted August 18, 2017 at 09:55AM by trontastic_carrots http://ift.tt/2fRPTiq
