Estimated tax ?

fiance

quarter,

It depends on how unequal your separate incomes are. By filing jointly over separately (or previously as single), more of the higher earner's income may be taxed at a lower rate as it is absorbed by the unused lower rate(s) of the spouse with the lower income, thus resulting in a lower combined tax than the sum of the separate taxes.

The joint tax rate might be lower, so his withholding covers you. Of course, he can increase his withholding rather than pay estimated taxes.

Even if it doesn't, it is not a big deal. There is no actual penalty; you just have to pay interest on the amount. If you had to borrow the money to pay the estimated taxes (or borrow more money to buy a car because you used the car money to pay estimated taxes...) you would be better off NOT paying estimated taxes, and paying the interest instead.

The crux of your question is that "I am to get married in Nov. 2009." That's a far piece off I think, and things can change. (Don't get this wrong now, I'm not predicting anything! lol)

My advice to a client in your situation is to continue as if you'll be single the whole year. Make those first three quarterly tax payments in April, June and September.

After you get married; then, and only then, should you consult with your accountant again and reassess the situation.

IOW, don't count your (tax savings) chickens before they hatch.

ChEAr$, Harlan Lunford, EA n LA

"Harlan Lunsford" wrote

You mean: Don't count your tax savings before the wedding.

Years ago I had a client whose daughter got married in like May, and was divorced by December that same year. She changed her withholding from "single" to "married" for the bulk of the year (maybe changing it pre-nuptials), but at the end of the year she had to file as single. She was woefully under withheld with her taxes.

Actually I would go further and advise all married people to pay their taxes, whether via withholding and/or estimated taxes as if they were going to file separately. For one such married client couple, she is a nurse and typically has less than a thousand overwithheld each year, while he is self employed and faithfully makes his estimated payments each quarter which are calculated by me every quarter. Then at year's end when the return is filed I calculate her refund separately. She's happy that way, and he pays only his fair share.

Of course not all people have such a caring accountant on their side. (grin

ChEAr$, Harlan Lunsford, EA n LA

It's me.... Well I hope it's going to take place Nov. because the invites will be that way, the hall is rented, photographer, officiant- so it better be that way LOL. If we marry & stay married in the same year, it doesn't matter WHEN the marriage took place, because they consider the whole year as a married status. My concern was I did not want to hurt HIM (He always gets a refund.. I usually do NOT!I always miscalculate for some reason! Well, my salary fluctuates so much anyways.) Like someone said just pay anyways my estimated and worry about it after. I know I know, MOST people pay bi-monthly through their jobs, I pay every 3 month....so I shouldn't be complaining- I just hate gving up so much at once don't cha know teehee!

"She's got it! By George, she's GOT it!"

- My Fair Lady

ChEAr$, Harlan Lunsford, EA n LA

This is very simple, really. You keep paying your installments, in the amount of 1/4 of your 2008 taxes (or 1/4 of 110% of last year's tax if your combined AGI was over $150K in 2008). He keeps having withholding adjusted to withhold 100% or 110% of his prior year's tax.

Sometime in December, after you're wed, estimate your true taxes as MFJ, including your SE tax and you have two easy choices. .

1. If you will owe less than your withholding and paid ininstallments, skip part or all of your Jan 15 installment.

If you owe more than you have withheld and paid in installments (including your January installment) you will not have a penalty because you will have totally met your combined "last year's tax" safe harbor.

You can pay the remainder (or maybe get a refund) in April 2010. For estimating taxes in 2010 you have lots of options.

1. Keep paying as you did in 2009
2. Adjust withhlding to cover your total tax liability
3. Use the Annualized Iincome Method to determine how much installment you actually need each quarter after factoring in total income and his withholding. You can Google "2210 tax calculator" to find one to download from the net.

ed