How Much to Withhold for Husband and Wife Team

[jenboo]

Hi!
My husband and I will be doing our in-home daycare together and I want to make sure we withhold enough throughout the year. We already have prior tax bills we are paying and I do not want more.

We are estimating our business to make around 100k before business expenses. Would setting aside 40% each month be enough??

[jenboo]

Anyone have advice?

[TomCopeland]

tax withholding

Hi!
My husband and I will be doing our in-home daycare together and I want to make sure we withhold enough throughout the year. We already have prior tax bills we are paying and I do not want more.

We are estimating our business to make around 100k before business expenses. Would setting aside 40% each month be enough??

40% is too much. Not knowing how much your business expenses will be, I estimate that you will owe about 20% federal tax on the 100k of gross income. You will also owe state income tax, and I don't know what that would be for your state.

[jenboo]

40% is too much. Not knowing how much your business expenses will be, I estimate that you will owe about 20% federal tax on the 100k of gross income. You will also owe state income tax, and I don't know what that would be for your state.

20% total for the both of us combined?

[jenboo]

Im also in idaho

[TomCopeland]

estimated taxes

20% total for the both of us combined?

Yes, your combined gross income.

[jenboo]

Yes, your combined gross income.

Thanks!!