|
Posted by dc2 on June 27, 2008, 3:48 pm
Please log in for more thread options
Hi,
Till last year (2007), myself and my wife were filing taxes jointly. I
am a full-time W-2 employee and get regular salary. My wife never
worked or had income till Feb 2008. This year, in Feb 1st week, she
opened a single member LLC to start a small business. Till now, she
has got income of around $2500.
But she has not filed any estimated taxes as of now. We live in VA.
As this is the first time, so we are confused. Do we have to file
estimated taxes jointly ? Do we have to do quarterly ?
If anybody can guide us, that would be great.
Thanks
DC
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Arthur Kamlet on June 27, 2008, 5:00 pm
Please log in for more thread options
>Hi,
>
>Till last year (2007), myself and my wife were filing taxes jointly. I
>am a full-time W-2 employee and get regular salary. My wife never
>worked or had income till Feb 2008. This year, in Feb 1st week, she
>opened a single member LLC to start a small business. Till now, she
>has got income of around $2500.
>
>But she has not filed any estimated taxes as of now. We live in VA.
>
>As this is the first time, so we are confused. Do we have to file
>estimated taxes jointly ? Do we have to do quarterly ?
>
>If anybody can guide us, that would be great.
Sounds like MFJ is sure the way to go here.
You will be paying income tax not on her 2500 income, but
on the profit she reports on her schdule C or C-EZ. Roughly
income less expenses will be her profit. If her profit is more
than $433 she also pays Self Employment tax of about 14.1% of her
profit.
Look at schdule C and be sure she is keeping receipts and good
records using expense categories shown on schedule C, though
feel free to add your own categories when necesaary. If she purchased
any capital items (usually relatively costly equipment that
contributes to the operation of the business and will last
more than a year) she should probably talk to her tax adviser
about how to handle the tax treatment, as she has options.
It could be that you (jointly) should be filing estimated taxes
using form 1040ES. See IRS Publication 505 and the Form 1040ES
instructions for details.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by removeps-groups@yahoo.com on June 27, 2008, 5:00 pm
Please log in for more thread options
> Till last year (2007), myself and my wife were filing taxes jointly. I
> am a full-time W-2 employee and get regular salary. My wife never
> worked or had income till Feb 2008. This year, in Feb 1st week, she
> opened a single member LLC to start a small business. Till now, she
> has got income of around $2500.
>
> But she has not filed any estimated taxes as of now. We live in VA.
>
> As this is the first time, so we are confused. Do we have to file
> estimated taxes jointly ? Do we have to do quarterly ?
>
> If anybody can guide us, that would be great.
If you file a joint return then you pay estimated taxes jointly.
See https://www.eftps.com/eftps/ for the easiest way to make federal
estimated payments. It takes about 2 weeks to set up an account, but
it's free, so start now.
Estimated tax payments for 2008 are due April 15 2008, June 15,
September 15, Jan 15 2009 (where you need to pay 90% of the tax due),
and the remaining 10% on April 15, 2009. Note that these are not true
quarters -- some are 2 months, some are 4 months.
You'll have to do more research to figure out about VA taxes, but it
will be similar to federal.
If you generally get a refund every year (say due to a house), then it
means your withholding at work is too much and would likely cover
taxes on this $2500 your wife earned. Otherwise you can increase your
withholding at work or pay estimated taxes. If you pay estimated
taxes with a different amount each quarter, you may have to track your
income by quarter, which is a pain.
If you're in safe harbor, you don't have to worry about estimated
taxes this year only.
Maybe talk to a tax pro.
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Harlan Lunsford on June 27, 2008, 5:27 pm
Please log in for more thread options removeps-groups@yahoo.com wrote:
>
>> Till last year (2007), myself and my wife were filing taxes jointly. I
>> am a full-time W-2 employee and get regular salary. My wife never
>> worked or had income till Feb 2008. This year, in Feb 1st week, she
>> opened a single member LLC to start a small business. Till now, she
>> has got income of around $2500.
>>
>> But she has not filed any estimated taxes as of now. We live in VA.
>>
>> As this is the first time, so we are confused. Do we have to file
>> estimated taxes jointly ? Do we have to do quarterly ?
>>
>> If anybody can guide us, that would be great.
>
> If you file a joint return then you pay estimated taxes jointly.
(snipppeddd..)
NO. Let's stop right there.
Any one may file estimated vouchers and separately, too. You are not
bound by whether or not you have in the past filed joint tax returns.
In this case, it is the wife who will be incurring added tax liability,
so she should be the one to file her OWN estimated taxes under her OWN
social security number. Then IF they decide to file jointly, the credit
will be in place.
I admit it is sometimes easier for a tax pro to print out a default
1040 es using both names, since that's the way software is designed to
"think", i.e. that the couple is happily married and will in the future
continue to file jointly.
But .. still.... accidents happen! (grin)
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Arthur Kamlet on June 27, 2008, 5:54 pm
Please log in for more thread options >>
>> If you file a joint return then you pay estimated taxes jointly.
>
>NO. Let's stop right there.
>
>Any one may file estimated vouchers and separately, too. You are not
>bound by whether or not you have in the past filed joint tax returns.
Sure.
And vice versa. Which is probably not the best type of vice.
In Ohio, I often file joint estimates when a couple has been and
probably will file separate returns. This has the major advantage
of preserving their flexibility to assign their individual estimated
amounts as they mutually agree.
And Ohio tax folks have been able to understand that for several years
now.
But IRS not only doesn't understand that there are two Names/SSNs on
jointly filed estimates, they consistently foul it up when less than
all of the estimate is claimed by the primary taxpayer filing MFS.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | How to file federal taxes for my mother in nursing home | March 3, 2008, 12:05 pm |
| Amending 2007 taxes -- can I file before receiving 1099R-correction? | November 29, 2007, 8:04 pm |
| penalties if you discover underpayment of taxes and file amended return | April 5, 2008, 1:10 am |
| Does my dad in nursing home need to file taxes? If so does it make sense that he owes? | April 6, 2008, 12:26 pm |
| Estimated Taxes | June 18, 2007, 9:27 am |
| Estimated Taxes | June 19, 2007, 9:29 pm |
| Re: Estimated Taxes | June 24, 2007, 10:41 pm |
| Re: Estimated Taxes | June 26, 2007, 12:19 am |
| Re: Estimated Taxes | June 29, 2007, 6:07 pm |
| Q4 Estimated Taxes | April 14, 2008, 7:31 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap