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Daycare and Taxes>Confused About Taxes (Quarterly vs Yearly +Spouse)
Unregistered 09:36 PM 05-09-2012
So I'm probably over thinking this and I've yet to look at the paperwork as I just started my home care this month but if I file my taxes quarterly to avoid paying a large lump sum at the end of the year, how will the end of the year with my spouse's taxes work? I'm a newbie and taxes scare me! lol! Thanks for any advice!
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DCP 05:32 AM 05-10-2012
My husband has enough taken out to cover mine and we file jointly - so I do not pay in. However if I did we would get more back LOL

In general - yes you use the forms to calculate how much you should pay in quarterly. This will avoid any possible "pay ins" at the end of the year. If your spouse has enough taken out, and you file jointly..this will be a bonus as you will get more back at tax time

Taxes are scary but if you do everything you are supposed to do..then there is no reason to worry
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TomCopeland 12:22 PM 05-10-2012
Originally Posted by Unregistered:
So I'm probably over thinking this and I've yet to look at the paperwork as I just started my home care this month but if I file my taxes quarterly to avoid paying a large lump sum at the end of the year, how will the end of the year with my spouse's taxes work? I'm a newbie and taxes scare me! lol! Thanks for any advice!
You pay taxes as a family, since you are filing a joint tax return. You can either file quarterly estimated taxes to pay the taxes you will owe on your income, or have your husband withhold more to cover your taxes. Most providers have their husbands withhold more. Any money you pay in quarterly and any money your husband has withheld counts as taxes paid by your family.
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dave4him 04:59 PM 05-26-2012
How much more should we withhold??
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TomCopeland 10:45 AM 05-29-2012
Originally Posted by dave4him:
How much more should we withhold??
This can be difficult to determine. As a rough rule of thumb, you will owe about 20% of your gross income (parent fees and Food Program income) for federal taxes (income and social security). Check you state to see how much your state income taxes are.
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EntropyControlSpecialist 11:28 AM 05-29-2012
What happens if, at the end of the year, you discover your husband did NOT withhold enough? I'm a nervous nellie.

I live in Texas & bring in around $5,500 a month.
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TomCopeland 04:28 PM 05-29-2012
Originally Posted by LCLC:
What happens if, at the end of the year, you discover your husband did NOT withhold enough? I'm a nervous nellie.

I live in Texas & bring in around $5,500 a month.
If your husband didn't withhold enough, you will owe taxes and a penalty. One way to estimate your taxes is to look at last year's tax return. Will your husband's income be about the same? Estimate your profit by multiplying your gross income by 60%. Then add this income to last year's tax return to see if how you would come out. If you got a big refund last year, your husband may not need to withhold more.

At $5,500 gross income a month x 12 months = $66,000 x 60% = $39,600 estimated profit. $39,600 x 30% estimated federal taxes = $11,880 estimated federal taxes due. This is a rough estimate.
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Lyss 10:42 PM 05-30-2012
Originally Posted by TomCopeland:
If your husband didn't withhold enough, you will owe taxes and a penalty...
And a penalty?? what would that be?

My husband has always withheld at a higher rate (we usually get something back) and I'm only making about 1200/mo (as of starting in April and only for the next 3 months, then only $900/mo). My husband's income will be the same as last year, mine will just be what I have earned since April (which is no where near what I was making last year). So I will owe about 20% of what ever I make roughly?

Also is there a way to figure out what will be owed for state (OR) taxes?
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TomCopeland 08:56 AM 05-31-2012
The penalty for not paying in enough taxes throughout the year is about 2.2%. Trying to figure out exactly what you will owe in estimated taxes is extremely difficult because of all the variables: your house expenses, your personal circumstances (health expenses, itemized deductions), other business expenses, your family tax bracket. That's why I say use 20% of your income as a rough estimate. I don't know the various state income tax rates. Contact your state department of revenue for this information.
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Lyss 02:14 PM 06-01-2012
Originally Posted by TomCopeland:
The penalty for not paying in enough taxes throughout the year is about 2.2%. Trying to figure out exactly what you will owe in estimated taxes is extremely difficult because of all the variables: your house expenses, your personal circumstances (health expenses, itemized deductions), other business expenses, your family tax bracket. That's why I say use 20% of your income as a rough estimate. I don't know the various state income tax rates. Contact your state department of revenue for this information.
Ok thanks!
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EntropyControlSpecialist 06:24 PM 06-06-2012
Thank you!
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Tags:joint tax return, taxes - quarterly, taxes owed
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