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!!
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.