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Daycare and Taxes>How Much to Withhold for Husband and Wife Team
jenboo 12:24 PM 08-15-2019
Hi!
My husband and I will be doing our in-home daycare together and I want to make sure we withhold enough throughout the year. We already have prior tax bills we are paying and I do not want more.

We are estimating our business to make around 100k before business expenses. Would setting aside 40% each month be enough??
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jenboo 11:37 AM 08-19-2019
Anyone have advice?
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TomCopeland 04:17 PM 08-19-2019
Originally Posted by jenboo:
Hi!
My husband and I will be doing our in-home daycare together and I want to make sure we withhold enough throughout the year. We already have prior tax bills we are paying and I do not want more.

We are estimating our business to make around 100k before business expenses. Would setting aside 40% each month be enough??
40% is too much. Not knowing how much your business expenses will be, I estimate that you will owe about 20% federal tax on the 100k of gross income. You will also owe state income tax, and I don't know what that would be for your state.
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jenboo 06:40 PM 08-19-2019
Originally Posted by TomCopeland:
40% is too much. Not knowing how much your business expenses will be, I estimate that you will owe about 20% federal tax on the 100k of gross income. You will also owe state income tax, and I don't know what that would be for your state.
20% total for the both of us combined?
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jenboo 06:58 PM 08-19-2019
Im also in idaho
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TomCopeland 11:44 AM 08-20-2019
Originally Posted by jenboo:
20% total for the both of us combined?
Yes, your combined gross income.
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jenboo 04:51 PM 08-20-2019
Originally Posted by TomCopeland:
Yes, your combined gross income.
Thanks!!
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Tags:gross income, tom copeland, withholding tax
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