Paying taxes on moonlighting

[Ulquiorra]

Hi all,

I started moonlighting recently. I've been enjoying it and making quite a bit of money too!

I was wondering if how other folks who are currently moonlighting (or have done so in the past) handled paying taxes on moonlighting income?

I'm quite ignorant on the subject and would appreciate any input.

Thanks!

---

Members don't see this ad.

 

[Atilla]

As far as my experience goes -

If its at the same institution where you are doing your residency then they would take it out of your paycheck which would ultimately reflect on your W-2.If you work for an outside hospital they would give you a 1099 independent contractor form at the end of the year. The final taxes would be determined by your accountant at the time of filing the taxes.

 

[Doc Samson]

Agree with the above. Unless your moonlighting institution is deducting taxes already, you are considered a private contractor and are obliged to calculate and pay taxes on your additional income at the end of the year. This, of course, now means that things can be tax deductible for you since you're essentially self-employed (e.g., books, conferences, society memberships, home office, supplies, etc.). If you make enough by moonlighting you may have some obligation to pay taxes quarterly so as to avoid penalty at the end of the year. You can also look into a SEPP (the self-employed version of a 401k) to defer taxes on some of your moonlighting income.

In a nutshell - time to find an accountant.

 

[Therapist4Chnge]

As a former contract worker (previous career), I learned first hand the value of having a solid accountant and a good plan when it came to paying taxes. It can be a large chunk of change if you don't plan for it (even paid quarterly). Depending on your gross, it may be helpful to pull in a financial planner for some short-term investments to help negate some of the tax hit.

 

[whopper]

If moonlighting, and not paying taxes on each paycheck, you better save up a chunk and during tax time have that money.

If you don't trust yourself, there is a way to make sure your taxes are paid with each paycheck. Nuts, forgot what to do to make that happen.

 

[Therapist4Chnge]

Depending on where you work, you can sometimes get direct deposit to split between 2 bank accounts. Some people use this method to "pay themselves" so when the tax bill comes they have $ for it.

 

[michaelrack]

2 ways of handling this:

1. Make quarterly tax payments on your moonlighting income

or

2. have extra withheld from your regular paycheck to compensate for your moonlighting income.

 

[kugel]

2 ways of handling this:

1. Make quarterly tax payments on your moonlighting income

or

2. have extra withheld from your regular paycheck to compensate for your moonlighting income.

3. remember the phrase that millions have used to get them out of trouble in all kinds of predicaments.
When the IRS takes you to court in attempt to throw you into jail, look the court reporter dead in the eye and repeat your new mantra, "I Forgot."
Those two little words should get you out of any trouble you could get into. Just repeat them whenever there is any hint of a problem. As in,
"I forgot that it's a federal crime not to pay taxes."

Let us know how it works out.

 

[HCE]

3. remember the phrase that millions have used to get them out of trouble in all kinds of predicaments.
When the IRS takes you to court in attempt to throw you into jail, look the court reporter dead in the eye and repeat your new mantra, "I Forgot."
Those two little words should get you out of any trouble you could get into. Just repeat them whenever there is any hint of a problem. As in,
"I forgot that it's a federal crime not to pay taxes."

Let us know how it works out.

Wasn't that part of Steve Martin's plan on making a million dollars without paying taxes? "First, get a million dollars." Then those two magic words....

 

[kugel]

Wasn't that part of Steve Martin's plan on making a million dollars without paying taxes? "First, get a million dollars." Then those two magic words....

Precisely.
As Milton Berle used to say, "I know a good joke when I steal it."

 

[whopper]

A buddy of mine was not aware that his moonlighting was not having the taxes removed.

Let's just say that by tax time, he had a panic attack.

 

[kugel]

A buddy of mine was not aware that his moonlighting was not having the taxes removed.

Let's just say that by tax time, he had a panic attack.

300.22 Panic A Tax

 

[DD214_DOC]

Hi all,

I started moonlighting recently. I've been enjoying it and making quite a bit of money too!

I was wondering if how other folks who are currently moonlighting (or have done so in the past) handled paying taxes on moonlighting income?

I'm quite ignorant on the subject and would appreciate any input.

Thanks!

I asked this question earlier and didn't get much of a reply. As a psychiatrist, what options are available for moonlighting? What is the income potential like? What about as an attending? Seems like picking up extra work would be a great way to pay off those loans quickly.

 

[OldPsychDoc]

I asked this question earlier and didn't get much of a reply. As a psychiatrist, what options are available for moonlighting? What is the income potential like? What about as an attending? Seems like picking up extra work would be a great way to pay off those loans quickly.

As a resident, there will be limitations due to time, licensure, geography, and program rules, so the answer will very much vary.

As an attending, you're only limited by your own good sense and threshold for pain and punishment.