Determine the Tax Payment Amount

Determining the appropriate amount to submit as a Quarterly Tax Payment is easy by using the calculate taxes endpoint.

When calculating taxes, you provide 1099Income , w2Income , expenseDeduction, mileage , filingState, and filingStatus.

The following provides an example response from the GET /user/{userId}/taxes/{year} API endpoint:

{
  "data": {
    "1099Income": 180000,
    "effectiveTaxRate": 0.3006,
    "expenseDeduction": 865,
    "federalIncomeTax": 21408.98,
    "federalTaxOutstanding": 43281.28,
    "federalTaxTotal": 43281.28,
    "filingState": "ca",
    "filingStatus": "head_of_household",
    "irsPayments": 0,
    "quarterlyPayments": 0,
    "marginalTaxRate": 0.4545,
    "medicareTax": 4797.5,
    "mileage": 0,
    "mileageDeduction": 0,
    "otherIrsPayments": 0,
    "otherStatePayments": 0,
    "otherTaxWithholdings": 0,
    "qbiDeduction": 29969.77,
    "selfEmploymentTax": 21872.3,
    "smartTaxRate": 0.3776,
    "socialSecurityTax": 17074.8,
    "stateIncomeTax": 10826.78,
    "stateTaxOutstanding": 10826.78,
    "stateTaxPayments": 0,
    "taxBalance": 54108.06,
    "taxWithholdings": 0,
    "taxWithholdingsPending": 0,
    "taxTotalOutstanding": 54108.06,
    "totalTax": 54108.06,
    "w2Income": 0,
    "year": "2020"
  },
  "request": {
    "requestId": "requestId_148a74444924c899f0fbd9df",
    "timestamp": 1612991495027
  }
}

For quarterly tax payments submitted to the IRS, the appropriate value to set as the amount for your Quarterly Tax Payment is the federalTaxOutstanding. This value represents the outstanding tax owed to the federal government after considering previous quarterly tax payment amounts submitted to the IRS. For the taxes object example above, the amount for the userā€™s Quarterly Tax Payment to the IRS would be 43281.28.

For quarterly tax payments submitted to a state, the right value to set as the amount for your Quarterly Tax Payment is stateTaxOutstanding. This value represents the outstanding tax owed to the state government after considering previous quarterly tax payments submitted to the state. For the taxes object example above, the amount for the userā€™s Quarterly Tax Payment to the state would be 10826.78.


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