My husband just started a new job where they will not be taking taxes out of his check I was wondering if anybody had advice on the best way to calculated how much we should hold out each week or even if this is the best way to do it also any websites will help.
Thank You
2007-04-10 13:41:09 · 7 answers · asked by superwomen 3 in Business & Finance ➔ Taxes ➔ United States
If your husband is considered self-employed, he will have to pay 15.3% self-employment tax on his earnings, in addition to any federal and state taxes owed. Tax payments can be mailed in or paid online. They are due "quarterly" 4/15, 6/15, 9/15 and 1/15. So the first quarter payment for his 2007 estimated taxes is due next week on 4/17.
Look at last year's tax return and see what the total tax liability was (before payments). As long as you pay in at least this much this year, you will not be subject to underpayment penalties.
You can read more about estimated taxes at www.irs.gov
http://www.irs.gov/businesses/small/article/0,,id=110413,00.html
2007-04-10 23:04:17 · answer #1 · answered by tma 6 · 0⤊ 0⤋
Think about the income you and him will have in 2007 (total). Then, think about the deductions you and him will have in 2007 (total). Subtract your deductions from income to get a number.
Once you have that number, visit the website below to see your tax rate. Then, you can calculate the % of each paycheck that should be set aside for taxes.
If taxes aren't taken out automatically, you need to make quarterly payments. If you pay into the system just as much as last year OR you pay 90% (or higher) of your total tax liability for THIS year, then you avoid penalties.
2007-04-10 13:46:30 · answer #2 · answered by mukwonago53149 5 · 0⤊ 1⤋
If you are not having withholding you may have to pay estimated taxes so that you do not end up with a huge tax liability and penalty at tax time.
IRS Publication 505 has info (you can request a copy be mailed to you or use www.irs.gov)
Publication 919 might also be helpful.
Many state Department of Revenue web sites can help also.
Depending in how much money he is making, you may want to consider seeing a CPA.
2007-04-10 13:53:38 · answer #3 · answered by MWMAMA 3 · 0⤊ 0⤋
Estimate the income tax he'll owe on whatever he'll make, then add 15.3% for self-employment tax. Remit 1/4 of that amount each quarter. Don't forget the state if your state has an income tax.
2007-04-10 15:14:23 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
You need to find out if he is considered an employee or an independent contractor. It sounds like an independent contractor to me, so he's really self employed. In either case, quarterly estimated taxes need to be filed.
2007-04-10 13:52:26 · answer #5 · answered by barbara 2 · 0⤊ 0⤋
You can go to www.paycheckcity.com and do a gross to net paycheck calculation. Since your husband is going to be considered self-employed, you will have to double the social security and medicare taxes as he will be responsible for both the employer and employee portion
2007-04-10 13:48:07 · answer #6 · answered by Mom of 2 4 · 0⤊ 1⤋
i would just act like nothin happened, lol
(sike)
kinda...
2007-04-10 13:43:16 · answer #7 · answered by msconfused 3 · 0⤊ 5⤋