If you earn 1099 income (i.e. you do gig work or are a freelancer), then your taxes generally aren’t automatically withheld like they are with W-2 income. This means that you’ll likely need to pay quarterly estimated taxes based on your expected income. You’ll also possibly owe additional taxes at year-end in April. With indi, you can leave the stress and complicated calculation to us with Tax Savings Goal.1
What is a Tax Savings Goal?
A Tax Savings Goal is a way to estimate how much you may owe in taxes annually and at each quarter. You tell us a little bit about your income, expenses, filing status, and dependents, and we’ll estimate how much you should save for taxes. Even more, we can automatically set aside a portion of each paycheck toward your Tax Savings Goal. You can easily see your progress toward your Tax Savings Goal in the Taxes section of the indi mobile banking app. You can also track any quarterly estimated tax payments you make throughout the year as well as when you make your annual tax payments in April.
How can a Tax Savings Goal help me?
Keeping track of how much you need to save for taxes takes a lot of time and calculation. We’ve already done the math, so you can spend less time worried about saving for taxes and more time making money.
What is Autosave?
When autosave is on, indi will automatically designate a percent of each deposit to Tax Savings. The autosave percent is determined by your Tax Savings Goal. If you save ahead or fall behind, indi will adjust your autosave percent accordingly.
What happens to the money in my Tax Savings?
The money in your Tax Savings is labeled differently from your Okay to Spend amount, so you have a clear idea of how much you have set aside for taxes and how much you can spend on other expenses. If you make a purchase that’s more than the amount available in your Okay to Spend, we’ll draw from Tax Savings and automatically adjust your Autosave amount to make up for the difference.
How do I transfer money to and from my Tax Savings Goal?
All of your money is available to you at any time, whether it’s in Okay to Spend or Tax Savings. To move money to or from your Tax Savings, open the indi mobile banking app, use the hamburger menu icon in the top left corner of the screen, click Move Money, and move the amount you want to or from Tax Savings. If Autosave is enabled, we’ll adjust how much is contributed to your Tax Savings from your next paycheck to make up for what you moved to Okay to Spend. You can move money as often as you need.
How do I recalculate my Tax Savings Goal?
There are a few reasons you may need to recalculate your Tax Savings Goal:
- If your household expected income changes
- If your tax filing status changes (i.e. you file Married Filing Jointly instead of Single)
- Your dependents change
It’s easy to recalculate your goal at any time. Simply open the indi mobile banking app, click Taxes at the bottom of the home screen, then click “Recalculate goal” in the top right corner. Update any information then click Next at the top of the screen when you’re finished. We’ll update your Tax Savings Goal and get you on track to saving for your tax payments.
Please note that the above is provided on an informational basis and is not a substitute for individual tax planning or for legal, financial, or tax advice.
1. indi’s Tax Savings Goal feature is not a substitute for individual tax planning or for legal, financial, or tax advice. This feature is intended only as a tool to provide a basic sense of your potential tax savings needs. Because indi will not know everything about your finances or your personal situation, your Tax Savings Goal may be more or less than your actual tax liability. The Tax Savings Goal does not account for local taxes. Using funds designated as Tax Savings for other spending may leave too little money to pay your taxes.