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If both my husband and myself are working at our in-home daycare, do we still need to save around 20% for taxes or more?
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Estimated taxes
Figuring out how much to pay for estimated taxes is always difficult. I use 20% of gross income as a reasonable estimate of what you would owe in federal social security and income taxes. Having your husband working with you doesn't change my estimate.
The answer can vary a lot depending on circumstances: expensive home, high personal medical expenses, other high business expenses, personal tax credits and exemptions.
If you have any history of doing taxes while doing child care, use your own history as your best guide.
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