Determine the Tax Payment Amount

Determining the appropriate amount to submit as a Quarterly Tax PaymentQuarterly Tax Payment - A non-reversible IRS tax payment that Abound submits. Quarterly tax payments are initiated by calling the Tax Payments API endpoint. is easy by using the Taxes endpoint.

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 PaymentQuarterly Tax Payment - A non-reversible IRS tax payment that Abound submits. Quarterly tax payments are initiated by calling the Tax Payments API endpoint. 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 user’s Quarterly Tax PaymentQuarterly Tax Payment - A non-reversible IRS tax payment that Abound submits. Quarterly tax payments are initiated by calling the Tax Payments API endpoint. 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 PaymentQuarterly Tax Payment - A non-reversible IRS tax payment that Abound submits. Quarterly tax payments are initiated by calling the Tax Payments API endpoint. 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 user’s Quarterly Tax PaymentQuarterly Tax Payment - A non-reversible IRS tax payment that Abound submits. Quarterly tax payments are initiated by calling the Tax Payments API endpoint. to the state would be 10826.78.

Next, learn about the expected timing and deadlines for quarterly tax payments.


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