2015 Estimated Taxes with job loss Hello,
I am a graduate student and my yearly salary from the university counts as a fellowship, so no taxes are withheld. Each year, I pay estimated taxes in quarterly installments. However, starting in April of 2015, I am taking a leave of absence from my program and not receiving compensation. I do not know how long this leave of absence will last or how much money I will earn while I am away.
What's the protocol for estimated taxes at this point? I would really rather not pay 90% of my 2014 taxes just to be safe, as I'm not getting paid anymore and need the money. Usually for the first year of estimated taxes, the government gives the individual a grace period where estimated taxes do not have to be paid quarterly. Does my leave of absence reset the situation back to my "first year" of estimated taxes? Should I just pay depending how much I earn each quarter?
Thank you for your help!
D |