Another thing to consider - as a remote worker for a California company, make sure you're not having California state tax withheld from your paychecks! California only taxes non-residents on income physically earned while in California. If you haven't physically worked in California, you shouldn't be paying California income tax at all. This is separate from the 529 question, but many remote workers overlook this and end up filing unnecessary non-resident returns.

Just wanted to add some clarity on the Virginia 529 deduction limits since I see this question come up a lot. Virginia allows up to $4,000 per account per year for 529 contributions, and if you're married filing jointly, both spouses can deduct up to $4,000 each (so $8,000 total per account). Since you contributed $4,700, you can deduct $4,000 of that on your Virginia return this year. The remaining $700 doesn't carry forward for deduction purposes, but it's still a valid contribution toward your niece's education. Also, make sure you're contributing to a Virginia529 account or another qualifying state plan to get the deduction. The income source (California vs Virginia) definitely doesn't matter - what matters is your Virginia residency status when you file your state return.

Just wanted to add that the payment amounts for each quarter CAN vary, but there's a specific way to calculate them if your income is irregular. Use Form 2210, Schedule AI (Annualized Income) to determine proper payment amounts based on when you actually earned the income. This is especially helpful if your 1099 work is seasonal or project-based. I'm a wedding photographer who makes 70% of my income in summer months, and this approach has saved me from overpaying early in the year.

As someone who went through this exact situation last year, I can tell you that being a month late on one quarterly payment isn't the end of the world! The IRS penalty for late estimated tax payments is calculated using an underpayment rate (currently around 8% annually), but it's only applied to the specific quarter you missed and for the time period you were late. Since you mentioned your estimated payments this year will exceed your total 2022 tax liability, you're likely protected by the safe harbor rule. If your timely payments equal at least 100% of last year's tax (or 110% if your AGI was over $150k), you should avoid penalties entirely. Go ahead and make that June 15th payment now through IRS Direct Pay - no special forms needed, just select "Estimated Tax" for 2023. The system will accept it even though it's late. Any penalty calculation will happen automatically when you file your 2023 return next year. One tip for the future: set calendar reminders for the weird quarterly dates (April 15, June 15, September 15, January 15). They definitely don't follow a logical 3-month pattern, which trips up most new contractors!

One thing nobody's mentioned yet - check if your state also requires quarterly estimated payments! I made this mistake my first year contracting. Paid federal quarterly taxes but completely forgot about state taxes. Got hit with separate state penalties that weren't covered by the federal first-time abatement.

Friendly reminder that you should also be setting aside money for self-employment tax! When I first started contracting, I only calculated regular income tax and completely forgot about the additional 15.3% for self-employment tax (Social Security and Medicare). Was a nasty surprise at tax time.

Called my bank and they said they release irs deposits immediately when recieved no matter what the scheduled date is

Usually takes 1-3 business days once you see the 846 code! I've been tracking mine for years and it's pretty consistent. The date on your transcript is when the IRS releases the funds, but your bank might post it earlier or on that exact date. Since you're with Chase, they typically don't hold federal deposits - you'll probably see it Monday or Tuesday if your date shows 2/14. Good luck! 🤞

my parents pulled the same nonsense last year lol. they were mad cause they were losing like $1800 in tax benefits. but listen the rules r super clear - if ur 19+ and not a student, they CANNOT claim u as a qualifying child. period. and that "minor until 20/21" stuff is BS. even if that was true (its not), tax dependent status has specific rules that have nothing to do with state age of majority laws. don't let them pressure u into amending ur return when u filed correctly! they're just upset about losing the tax benefits they're used to getting. welcome to real adulting where u file ur own taxes and claim urself lol

I'm a tax preparer and I can confirm you filed correctly. Based on your situation - 19 years old, not a student, and earning $6,700 - your parents cannot claim you as a dependent under either test. The "qualifying child" test fails because you're 19 and not a full-time student. The "qualifying relative" test fails because your income exceeds the $4,700 threshold for 2024. Your mom's accountant either misunderstood the situation or your mom didn't give them complete information. The comment about Alabama's age of majority is irrelevant - federal tax law governs dependent status, not state age of majority laws. The $2,550 drop in your mom's refund is likely from losing the Child Tax Credit ($2,000) plus potential changes to her filing status if you were her only dependent. She might have to file as Single instead of Head of Household, which affects tax brackets and could impact other credits like the Earned Income Credit. I know it's tough dealing with family pressure, but don't amend your return. You filed correctly, and amending it would be filing false information. The IRS has systems to catch conflicting dependent claims, and both returns could face penalties if you both claim different statuses for the same person.