SwapnaM
Employee Tax Expert

Get your taxes done using TurboTax

1) Yes, you are right!! Any "extra" withholding you're already taking out specifically to cover your husband's self-employment earnings directly reduces the amount you'd otherwise need to pay via estimated taxes.

2) If your husband paid taxes in his birth country on the sale, you can usually claim a Foreign Tax Credit on your U.S. tax return (Form 1116) to offset your U.S. tax liability on the same income. This helps avoid double taxation. Keep careful records of any foreign taxes paid. Add this estimated U.S. tax liability (after any foreign tax credit) to your overall estimated tax calculation for the year. You can then adjust your remaining quarterly payments (or make an additional payment for the quarter in which the sale occurred) to cover this new income.

 

@PadillaFam Thanks again!!

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