Hi, if you have a net income that is negative after start-up cost and current year expenses are deducted, No, you would not need to make any estimated payments.
When you do have positive net income, remember that you will pay 2 separate taxes on this income. 1. Income taxes 2. Self-Employment taxes.
Income taxes.
Your net self-employed income will be added to your husband's income and taxed starting with the tax bracket his income is currently in.
For example, for married filling jointly individuals in 2023, taxable income from $190,751 to $364,200 is taxed at 24%. This means if he earns within the numbers above, your self employed income will be added to his income and taxed at 24%.
Self-Employed Tax
The self-employed tax is calculated on 92.35% of your net self-employed income only.
https://turbotax.intuit.com/tax-tips/self-employment-taxes/the-self-employment-tax/L8xXjolB4
Yes, once you have positive income, to avoid paying penalties and/or interest, you would make estimated quarterly payments to the Federal and State(s).
Tax Caster is a great tool for checking your tax liability/refund and running scenarios for different situations during the year.
https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
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