Thank in advance for any responses that may come of this. Appreciate your time!
My wife is currently in the process of starting her own business as a sole proprietor (officially begins on 10/01/2022). I am continuing my career as a W2 salaried employee. I have a few questions regarding how to plan for 2023...
1.) Does my wife need to pay quarterly in her first year of business? (Lots of contradictory info out there on this one)
2.) "Do you expect to owe more than $1000 in taxes?" is a question on the IRS site. Does 'owe' refer to total tax liability for us, or what we think we would have to pay into the IRS after completing our return? (We expect her to do about the same income as she has been doing as a W2 employee for the last decade once she is out on her own performing the same job independently. In the past, we have typically been refunded all of the federal taxes that she has paid in over the year.)
3.) IF our income remains the same as it has been for several years, would adjusting my withholding (if necessary) allow us to avoid paying quarterly? My withholding (typically) is enough to cover our final tax liability.
Sorry if this is confusing. Certainly not a tax professional so articulating these scenarios is not in my comfort zone!
