If you receive income through Grow Therapy or Rula, you're paid through Wingspan, which can automatically set aside part of your 1099 income for taxes in a separate account to help pay your Quarterly Estimated Taxes. When this feature is enabled, your income in Heard may appear lower than what you earned, and your quarterly estimate may come back low or even $0. Here's why, and the two ways to handle it.
Why your income looks lower in Heard
When Wingspan's withholding is on, it sets aside part of each payment in a separate Tax Account before the rest reaches your bank. Heard sees only the net amount that lands in your account, not your full earnings, so your income here is understated by whatever Wingspan held back. Wingspan Tax Accounts also can't connect to Heard through Plaid, so this never syncs on its own.
How your quarterly tax estimate is calculated
For each estimate, Heard totals the income reported in Heard, annualizes it, adds the outside income you report (W2, spouse, and "other 1099 income"), and produces your estimated payment. Because the withheld portion never reaches Heard, it's missing from that total, so your estimate is calculated on income that's already had taxes withheld and can come back lower than your actual liability.
Option 1: Turn off Wingspan withholding (most accurate)
For the most personalized estimate, turn off automatic tax withholding in Wingspan under Tax Withholdings. Your full income then flows to your bank and into Heard, so your estimate reflects your total income with nothing to correct each quarter. To set money aside for taxes yourself, use Heard's Allocation Guide to calculate a monthly amount to save.
Option 2: Keep withholding on and correct each quarter
If the automatic savings are helpful, leave withholding on and add the set-aside amount back each quarter:
- Find the amount withheld on your most recent Wingspan Tax Account statement, under Tax Withholdings.
- Enter it in the "Other 1099 income" section of your quarterly tax estimate checklist.
Because that field isn't annualized, a mid-year estimate may still run slightly low.
When you pay, don't double up. You've already set money aside through Wingspan, so compare your corrected estimate to that balance and pay only the difference if Heard's estimate is higher. If it's the same or lower, your set-aside funds already cover it.
Heard's estimates are a planning tool, not tax advice. For your specific situation, a licensed tax professional is the best source.
FAQs
How do I change or turn off how much Wingspan withholds? It's a Wingspan setting, not a Heard one. You can adjust the amount or turn it off under Tax Withholdings. Heard can't change it for you.
Can I connect my Wingspan account to Heard? Not at this time. Plaid doesn't support connections to Wingspan Business accounts.
What should I do with the funds Wingspan set aside? They're there to cover your federal and state quarterly tax estimates.