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Posted by ira.thorpe on March 23, 2007, 6:31 am
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I started a new job (government-sponsored fellowship) in
January that does not offer withholding. I am expecting to
have to pay quarterly estimated taxes for 2007. My wife's
company withholds taxes from her income, which is
approximately 60% of our total. When filing the quarterly
estimated payments, do I only consider my income or do I
have to include my wife's? If so, wouldn't we be paying
extra withholding? We filed jointly for 2005 and expect to
do so for 2006.
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Posted by Phil Marti on March 25, 2007, 12:26 pm
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> I started a new job (government-sponsored fellowship) in
> January that does not offer withholding. I am expecting to
> have to pay quarterly estimated taxes for 2007. My wife's
> company withholds taxes from her income, which is
> approximately 60% of our total. When filing the quarterly
> estimated payments, do I only consider my income or do I
> have to include my wife's?
You look at joint income, tax, and withholding/ES payments.
See Form 1040-ES and IRS Publication 505.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Paul Thomas, CPA on March 25, 2007, 12:26 pm
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> I started a new job (government-sponsored fellowship) in
> January that does not offer withholding. I am expecting to
> have to pay quarterly estimated taxes for 2007. My wife's
> company withholds taxes from her income, which is
> approximately 60% of our total. When filing the quarterly
> estimated payments, do I only consider my income or do I
> have to include my wife's? If so, wouldn't we be paying
> extra withholding? We filed jointly for 2005 and expect to
> do so for 2006.
You need to consider her income in computing the tax that
will ultimately be due on your income, and consider her
withholdings as well, in determining the additional amount
to remit as estimated taxes. You only have to pay in what
you will owe.
Don't forget the state tax.
You may want to consider meeting one of the safe-harbor
rules, bank the remainder till next March or so, and pay the
balance with the return.
--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Bill on March 25, 2007, 12:26 pm
Please log in for more thread options ira.thorpe@gmail.com posted:
> I started a new job (government-sponsored
> fellowship) in January that does not offer
> withholding. I am expecting to have to pay
> quarterly estimated taxes for 2007. My wife's
> company withholds taxes from her income,
> which is approximately 60% of our total. When
> filing the quarterly estimated payments, do I
> only consider my income or do I have to
> include my wife's? If so, wouldn't we be paying
> extra withholding? We filed jointly for 2005
> and expect to do so for 2006.
Yes, you should consider your wife's income and withholding
in calculating your total tax due.
You should estimate your joint total income for 2007, and
project taxes for the MFJ rates on that amount. (Form
1040-ES has a calculation guide.) Then, figure the
approximate taxes due, _subtract_ the amount that will be
withheld by your wife's employer, and you can then make 4
periodic Estd Tax Payments of 1/4 of the remainder.
Alternatively, if you were employed elsewhere in 2006, and
file MFJ, you can use the total tax due as a "safe harbor"
and simply make Estd Tax payments that bring your total up
to at least that amount.
Bill
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by William Brenner on March 25, 2007, 12:26 pm
Please log in for more thread options ira.thorpe@gmail.com wrote:
> I started a new job (government-sponsored fellowship) in
> January that does not offer withholding. I am expecting to
> have to pay quarterly estimated taxes for 2007. My wife's
> company withholds taxes from her income, which is
> approximately 60% of our total. When filing the quarterly
> estimated payments, do I only consider my income or do I
> have to include my wife's? If so, wouldn't we be paying
> extra withholding? We filed jointly for 2005 and expect to
> do so for 2006.
As a rank amateur, I would suggest you calculate the
estimated taxes on the total joint annual income, subtract
your wife's withholding total for the year and pay quarterly
installments on the balance.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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