Originally Posted by TomCopeland:
IRS rules say you must be paying in at least 90% of your taxes each quarter. This can be done by having your husband withhold enough through his job to cover your taxes, so then you wouldn't have to file estimated taxes quarterly. Or, you can file quarterly Form 1040ES. How much you will owe in estimated taxes varies greatly depending on your income, expenses, and personal tax situation (number of own children, medical expenses, other credits, etc.). As a general rule of thumb, you'll owe about 20% of your gross income in estimated taxes. Check with your state about paying in enough in state income taxes as well.
My husband goes to school full time so this is our only income.
20% of total income before deductions correct?
Is the penalty for not paying quarterly 3%? I read that somewhere, can't remember where though.