My wife and I file married jointly. Her tax situation has changed this year. She received her last paycheck from her employer in August. Just a few months before that she became a contractor with a different company. When do we start figuring out the quarterly tax payments? Do we do that now or wait until we file in 2026? As a follow-up, if we pay quarterly tax payments can that amount be taken from my withholdings (I would update my w4)?
Based on your wife's change in employment, you should begin accounting for her self-employment income now to avoid underpayment penalties. You can pay her estimated taxes either through direct quarterly payments or by increasing the withholding from your paychecks.
When to start figuring out quarterly tax payments.
Since your wife started her new contractor role months ago and received her last paycheck in August, you should start factoring in her new tax situation immediately. The estimated tax payments are tied to when the income is earned. Payments for contractor income are generally due four times a year:
April 15:For income earned January 1 through March 31
June 15:For income earned April 1 through May 31
September 15:For income earned June 1 through August 31.
January 15 (of the next year): For income earned September 1 through December 31
Lastly, you can ask your employer to increase your W-2 tax withholdings by submitting a new Form W-4. This is often done to cover taxes on other sources of income, prevent a large tax bill at the end of the year, or to receive a larger tax refund. However, your employer cannot send additional payments beyond your withholding directly to the IRS on your behalf. For those, you would need to make separate estimated tax payments.
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