How much tax should I expect to pay on two high-paying internships in different states?

15 Thanks for the info! Do internships typically withhold taxes at the correct rate? I'm worried they might not take enough out and I'll get hit with a bill next April. Also, does being a dependent change how much I'll pay compared to if I filed independently?

9 Internships typically withhold taxes like any regular job, but they often withhold as if you'll earn that same amount for the entire year, which might lead to overwithholding in your case since you'll only work for 8 months. I'd still check your first few pay stubs to confirm they're withholding enough. Being claimed as a dependent mainly affects your standard deduction - for 2025, you'll get a smaller standard deduction than independent filers. However, for your income level, this won't dramatically change your overall tax picture since you'll still benefit from the progressive tax brackets.

18 Did it help with the state tax returns too? I've heard filing in multiple states is a nightmare, especially with NY and CA involved.

22 I'm skeptical about these AI tools. How did it handle the specific NYC local tax situation? That's usually what trips people up.

4 It absolutely handled the state tax returns - that was actually where it helped me most. It guided me through establishing tax residency in each state and calculated exactly what I owed to each. For NY/CA situations specifically, it has state-specific modules that understand the nuances of each. Regarding NYC local tax, it was surprisingly detailed about this. It calculated the exact NYC resident tax rate that applied to my specific income level while I was there, and explained how the part-year residency would affect the calculation. It even flagged that NYC has some specific rules about allocation that differ from the state level.

19 Wait how does this actually work? Do they have some special connection to the IRS or something? I don't understand how they can get through when nobody else can.

22 This sounds like BS honestly. Everyone knows it's impossible to get through to the IRS especially during tax season. I've literally tried calling at opening time and still waited 2+ hours.

7 They don't have special access - they use technology to navigate the phone system and wait on hold for you. Their system constantly dials and navigates the IRS phone tree during operating hours, and when they finally get through to a human, they connect you. No special backdoor or anything like that. I had the exact same reaction at first! I'd tried calling 5 different times, getting disconnected after 1+ hour waits each time. But their system just keeps trying until it works. It's especially helpful during tax season when wait times are ridiculous. The longest they had to wait for me was about 2 hours, but I only had to come to the phone for the last 5 minutes when the agent was actually available.

13 Does this apply even for temporary housing during internships? My company is putting me up in a corporate apartment for 10 weeks. Should I be expecting to pay taxes on the value of that housing?

11 Yes, it definitely applies to temporary housing during internships. The general rule is that housing provided by your employer is typically considered taxable income unless it meets specific exceptions. For internships, the key factor is whether the housing is provided for the employer's convenience and required as a condition of employment. For corporate apartments, your employer will likely include the fair market value of that housing on your W-2 as taxable compensation. However, if your internship is explicitly temporary (less than one year) and at a location away from your main residence (usually defined as more than 50 miles), you might qualify for some exclusions. Check your offer letter - sometimes employers will provide tax gross-ups to cover the additional tax burden.

8 YES do this! I didn't last year and had way too much withheld. You can put additional deductions on your W-4 to account for the partial-year work. Just make sure you adjust it carefully or you might under-withhold.

Absolutely worth doing! I adjusted my W-4 for my internship last year and it made a huge difference. The IRS withholding calculator is really helpful for this - it can help you figure out exactly what to put on line 4(c) for additional withholding or line 4(b) for deductions. Since you're only working 8 months, the default withholding will definitely be too high. Just be conservative with your adjustments - it's better to get a refund than owe money at filing time.

This is really helpful advice about quarterly payments! I had no idea about the $500/$300 thresholds for CA and NY. Since I'll be making around $65k total between both internships, should I definitely plan on making quarterly payments? And when would those be due - I'm assuming they don't align perfectly with my internship schedules? Also, quick question about the Social Security/Medicare taxes - does that 7.65% apply to my full income or is there some kind of cap for students/interns?

With $65k total income between both internships, you'll likely need to make quarterly payments to both states. The quarterly due dates are Jan 15, Apr 15, Jun 15, and Sep 15 (or the next business day if they fall on weekends/holidays). Since your internships run Jan-May and Jun-Aug, you'll probably need to make payments for Q1, Q2, and Q3. For the Social Security/Medicare taxes (FICA), the 7.65% applies to your full income - there's no student exemption. The Social Security portion (6.2%) does have an annual wage cap ($176,100 for 2025), but you won't hit that with internship income. The Medicare portion (1.45%) has no cap. So yes, expect the full 7.65% to come out of every paycheck regardless of your student status. One tip: if your employers are withholding income taxes assuming full-year employment, you might actually have enough withheld to cover your quarterly obligations without making separate estimated payments. I'd recommend running the numbers once you get your first few paystubs to see where you stand.