Quarterly estimated tax payments for married couple


I

ira.thorpe

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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Phil Marti

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.
 
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Paul Thomas, CPA

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.
 
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Bill

(e-mail address removed) 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
 
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E

ed

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.
Instead of paying quarterly installments you could increase
your spouse's withholding to meet one of the "safe harbors".
When calculating how much to withhold and/or installments
lump your income together, compute the tax on it and deduct
spouses' expected withhholding. Pay 1/4 of the difference
each tax quarter.

ed
 
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William Brenner

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.
 
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Benjamin Yazersky CPA

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.
The best place to ask is of your CPA/tax professional who is
preparing your 2006 tax return.

You should look at the instructions for 1040ES to help make
your decisions. And remeber to do likewise for the state.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
 
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B

brownie

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 estimate your tax liability as MFJ for the tax
year (both incomes), subtract the amount of your wife's
witholding and what's left, divided by 4 should be your
quarterly payments if you want to come out with little or no
refund or tax due. Or you could increase your wife's
withholding to cover the taxes for both of your incomes and
not pay any estimated tax.
 
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news.verizon.net

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.
The form 1040-ES worksheet provides for expected
withholding. If you plug in the estimated incomes and
withholding you should arrive at a reasonable estimate for
quarterly payments.
 
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