Originally Posted by BrightBeginnings2014:
Last year I went to H&R Block and they told me to save 10%...now everything I'm reading is so much more. How much do you save each month??
She also told me you can do quarterly or lump sum at the end of the year and now I'm reading I'll get penalties for that. Bah ...so stressed!!
The best advice is to consult with a tax person who
specializes in daycare. Then, they will look at your individual needs beyond that.
In my experience, I have never seen a good daycare tax specialist at H&R Block.
There are so many write offs involved with in home daycare, it's best to really get to know what you can do or have someone (tax specialist) who does.
Beyond that:
If you are married/bringing in two incomes and that person brings in a W2 job, that significantly changes how much you should estimate.
If you have children under 18, that also really changes how much you should estimate.
Personally: (married, filing jointly) I have been doing this over 10 years. The first 8, I never paid estimated taxes and paid around $500 at the end of the year.
The last two years, our income changed a lot, so I estimated to pay $300-$400 quarterly and still pay $1000 at the end of the year.