From: CurtAdams@aol.com
Date: Wed Aug 02 2000 - 17:39:40 MDT
In a message dated 8/2/00 sentience@pobox.com writes:
>Does anyone here know the exact details of what paperwork is legally
>required to create a fellowship? For example, do I need to file a W-4
>with SingInst so that SingInst can withhold tax from fellowship
>payments? Do I need to calculate and send taxes myself on a quarterly
>basis? Or do I just calculate and pay my taxes at the end of the year?
>If I'm not going to be an employee, are things like health insurance
>deductible from my taxable income? And so on.
With my fellowship, I have to pay my own taxes. Neither my school nor
the funder files tax forms for me. I've been told the IRS doesn't
enforce this too well, since they don't get any forms; but I paid anyway
since I have moderately complex taxes and suspect I may get audited
someday.
Quarterly vs. annually depends on how much you owe. Macintax says I
needn't file estimates with my current situation but that's probably
influenced by some part-time work I've done for the University. The
Feds grossly overwithold for work done only part of the year.
Computer tax programs can estimate your need for estimated payments,
based on your projected income.
Medical expenses are only deductable if they exceed some portion of
your income - 7%, I think. In general, tax-favored benefits can only
come from companies. You can, however, write off a lot of work-related
expenses.
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