Question

Spouse's W2 income impact on estimated tax

Forum|Forum|2 years ago
August 30, 2023
1 reply
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Hello,

I am married and just started my own business as an independent hair stylist (booth rent). We both have always been W2 employees & have always filed jointly.

Does my quarterly tax payments need to include my spouses at all?

Can I just estimate just my earnings for this business and pay those quarterly and not worry about the broader family tax return?

Ask the Experts - Self-Employed - Aug 2023

Holly W

Hello @rwhalen1
Thank you for being here today, we are so happy to have your participation.

To answer your question, you can make your estimated payments based solely on your Self employed net earnings. When filing your tax return as Married Filing Jointly any estimated taxes that are paid will be entered on your joint tax return as a tax payment, regardless if you filed those estimated taxes as an individual or jointly.

Your spouse's taxes being withheld from their wages on a W-2 will also be entered on your joint tax return as a tax payment along with the estimated taxes that you have paid.

I hope that answers your question, if not I am happy to explain further!

Cheers,

Holly W

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R

rwhalen1Author

Thank you!

So if I expect to bring in gross $80,000 and have $20,000 in expenses, then I could do a simple estimate for $60,000 and not worry about all the "joint" information (real estate taxes, child deductions, spouse income/taxes, etc...). Correct?

Using the TT tax caster, I really do not understand the numbers. Using $60000 as net income, there are all kinds of deductions, etc... I do not know if this would include both federal and self employment taxes... My taxable income has to be higher than $23K

Estimated amount owed

-$10,932

Estimates change as we learn more about you

Income

$60,000.00

- Deductions

$36,112.00

Taxable income

$23,888.00

Marginal tax rate

12%

Total Federal tax

$10,931.73

- Credits

$0.00

- Payment/Withholdings

$0.00

+ Alternative min. tax

$0.00

+ Additional taxes

$8,477.73

Holly W

Hello @rwhalen1
Yes, for figuring your estimated taxes for each quarter.
The tax caster may not necessarily work for this situation due to not having the full picture for the puzzle.
I would rely on the IRS 1040-ES Worksheet to determine your quarterly estimated tax payment's.

Holly W

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