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Paying estimated taxes questions

443 views 1 reply 2 participants last post by  its_betty 
#1 ·
So I recently got a consulting job. I know I need to pay estimated taxes in Sept and Dec, but have a couple questions (and yes, I do plan on seeing a tax professional, but I am trying to work out how this income is going to affect us, so I was hoping someone might know now).
If I end up working the number of hours I think I will, I will probably end up with a little under $10K for the year. BUT, we have holidays and such coming up, so it will probably be even less. My understanding is I only need to pay est tax on the amount *I'm* making (DH is a regular employee, so he already has his deductions taken out), but do I figure it at the rate of what I'm making, or at the rate for what our combined income would be (total for both should be between 70 & 75 K, if that matters)? I am not sure if we will be filing jointly or separately (any suggestions on that? Again, I will obviously ask the professional, but wouldn't mind hearing your thoughts on the matter).

Thanks!
 
#2 ·
I'm not a lawyer or an accountant, so talk to one of those!

The due dates are actually Sept 15 and January 15. (And April 15 and June 15, but those will be for NEXT year.)

Yes, you should pay based on what your actual tax rate will be (and that includes your dhs salary if you are filing jointly). If you figure it properly, you won't owe much more (or get much refund) at tax time.

You also need to pay Self Employment tax (SE) included in your quarterly taxes. That's social security and medicare. Employees pay half, employers pay half. Since you will be self employed, you'll need to pay the full amount. I think it is 15.4%.

There are forms to help you figure out how much to pay. The IRS site is surprisingly helpful.
http://www.irs.gov/businesses/small/...110413,00.html

My state also requires quarterly taxes. My first year, I overpaid the state but didn't send the first quarterly payment, so I had to pay a fine even though I also got a refund.
 
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