I'm an accountant, and my brother and sister and law are in a similar situation and I advised them to go with the first option...
For this year you will need to either:
- pay 100% of the amount of federal taxed owned for 2009 through withholdings/ estimated payments. What I recommend is to take your total tax owed for 2009 and divide by 4. Each quarter verify that your husbands withholdings for that quarter total that amount ( 1/4 of total 2009 tax owed) or more. If they do not then you will need to make a quarterly payment.
- pay 90% of tax owed for 2010. This is a more complicated calculation, as you need to take in account deductions/ credits that you qualify for, and any changes in monthly income to help come up with the estimation.
If your Adjusted gross income is over $150k, then different rules apply... you would need to pay 110% of your 2009 tax.
I hope this helps.
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