Quarterly estimated tax payments for married couple

You look at joint income, tax, and withholding/ES payments. See Form 1040-ES and IRS Publication 505.

-- Phil Marti Clarksburg, MD

wrote

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 snipped-for-privacy@bellsouth.net

snipped-for-privacy@gmail.com posted:

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

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

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 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. ___________________________________

-----> real address on hobokeni or hobokenx

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.

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.