Hey guys,

I've been reading numerous threads here, and would like to ensure that I am in correct how I am reading all I have to do.

I am on a postdoc fellowship that does not remove any taxes from my check and I am no longer in a degree program. I began at the end of October (10/23 or so).

1. Am I correct to think that since I started so late in the year just claiming this income on my 2008 taxes is OK with no penalty since there was no time left in 2008 to file estimated taxes?
2. Do I have to file both estimated taxes for state and federal taxes (separately) from 1/2009 until the end of the fellowship? If that is correct then I should currently also be filling out estimated tax payments for 1/2009-3/2009, correct?

Currently I have claimined whatever I earned from Oct-Dec on line 7 with SCH and while my federal refund did not change (I had <10k in income last year) I ended up owing IL around 100 more.

I'd appreciate anyone's advice on this seeing as I'm getting confused with everything.

You DO have to file both a federal and state tax return for 2008, with no estimated taxes due for 2008.

For 2009, you need to file estimated taxes for both the IRS and the state.