I Think I Screwed Up :(

[jenboo]

I thought that as long as my husband was working and withholding taxes, that I didn't have to file quarterly. Well, I was just reading that if he isn't withholding enough, then I might have to pay penalties
I wish taxes were simple. I had no idea about this.

Im guessing we are going to be in trouble because he only made about $27k (guestimating) and I made about $40k. He was withholding normal until August when we started claiming as single and claimed an extra $200 per paycheck.

I really hope we don't owe more than I have set aside.

[TomCopeland]

estimated taxes

I thought that as long as my husband was working and withholding taxes, that I didn't have to file quarterly. Well, I was just reading that if he isn't withholding enough, then I might have to pay penalties
I wish taxes were simple. I had no idea about this.

Im guessing we are going to be in trouble because he only made about $27k (guestimating) and I made about $40k. He was withholding normal until August when we started claiming as single and claimed an extra $200 per paycheck.

I really hope we don't owe more than I have set aside.

You can still avoid any penalties for the last quarter of 2014, by filing IRS Form 1040ES by today! That's all you can do at this point. Any penalty will be minor (and it's his penalty as much as yours!).

[Laurel]

I thought that as long as my husband was working and withholding taxes, that I didn't have to file quarterly. Well, I was just reading that if he isn't withholding enough, then I might have to pay penalties
I wish taxes were simple. I had no idea about this.

Im guessing we are going to be in trouble because he only made about $27k (guestimating) and I made about $40k. He was withholding normal until August when we started claiming as single and claimed an extra $200 per paycheck.

I really hope we don't owe more than I have set aside.

In 20 years of doing childcare I never have filed quarterly. My husband just had more taken out of his paycheck. One year we did owe but there were no penalties. We just had to pay is all.

Laurel

[NightOwl]

I haven't paid quarterly either. Are we technically supposed to?

[jenboo]

You can still avoid any penalties for the last quarter of 2014, by filing IRS Form 1040ES by today! That's all you can do at this point. Any penalty will be minor (and it's his penalty as much as yours!).

So im looking at this right now and im so so so lost. How do i figure out my adjusted gross income? it says to look at 2013 taxes but I was only open for 4 months in 2013.

[jenboo]

In 20 years of doing childcare I never have filed quarterly. My husband just had more taken out of his paycheck. One year we did owe but there were no penalties. We just had to pay is all.

Laurel

we would have taken more out of his paycheck but i didn't know he had to be claiming a certain amount to "cover" me.

[WImom]

I got a $40 penalty last year. We adjusted my husbands withholding so hopefully we are okay this year. If not then I will start in 2015 (Probably April since I don't know yet) paying quarterly. Taxes are confusing!

[jenboo]

I haven't paid quarterly either. Are we technically supposed to?

When you are self employed, you have to pay a certain amount of taxes by a certain time or you get fined. Of you have a working spouse, they can withhold extra to cover your part.
Basically, the government wants to make sure they get to borrow as much $$ from people as they can throughout the year.

[NightOwl]

When you are self employed, you have to pay a certain amount of taxes by a certain time or you get fined. Of you have a working spouse, they can withhold extra to cover your part.
Basically, the government wants to make sure they get to borrow as much $$ from people as they can throughout the year.

There were no fines last year. Now I'm wondering if I did something wrong....

[TomCopeland]

estimated taxes

So im looking at this right now and im so so so lost. How do i figure out my adjusted gross income? it says to look at 2013 taxes but I was only open for 4 months in 2013.

To determine how to figure out how much you will owe in federal taxes on your income - multiply your gross income (parent fees, CACFP) by 20%. This represents a ball park estimate of what you will owe.