Paying Taxes on a Fellowship Stipend?

[Horb]

I didn't know that about the quarterly taxes. Last time I read the form, it said you could incur a penalty. Glad to know that was not true.

[Eigen]

You can incur a penalty if you owe more than a certain amount, but unless you're earning an enormous amount more than the average grad student, you won't hit that cap. 

 

The so-called "underpayment penalty", if you look at the forms, is basically a percentage of the amount you would have owed each day of the year, compounded until the point at which you pay it.