I have been overseas for nearly the entire year the last few years, so I have always qualified for the FEIE (Foreign Earned Income Exclusion)... which has allowed me to exclude up to around 100k of income off my taxes each year.
This year, I might make closer to 300k, which would put 200k of that income above the exclusion range.
From what I understand, you do not suffer an underpayment penalty for not paying quarterly taxes so long as you pay as much tax as you owed the previous year. Since my tax liability has been 0 the past few years due to the FEIE, do I need to pay quarterly taxes this year?
I obviously will have to pay quarterly taxes next year as I'[ll have a tax liability this year, but I'm nervous that there is some rule that I am missing and will get penalized for not making quarterly taxes this year.
This year, I might make closer to 300k, which would put 200k of that income above the exclusion range.
From what I understand, you do not suffer an underpayment penalty for not paying quarterly taxes so long as you pay as much tax as you owed the previous year. Since my tax liability has been 0 the past few years due to the FEIE, do I need to pay quarterly taxes this year?
I obviously will have to pay quarterly taxes next year as I'[ll have a tax liability this year, but I'm nervous that there is some rule that I am missing and will get penalized for not making quarterly taxes this year.
