What is the best way to estimate just for this new business? I am not sure how my previous taxes would help since I was a W2 employee.
I expect to make about $80,000, with about $20,000 in expenses (both rent, supplies, credit card transaction fees)
Few questions:
1) Does my spouse's income come into play with the estimate or just taxes for this business? We historically filed jointly, so not sure how to handle this business of mine.
2) Do expenses come into play for estimated payments, so do those apply during annual filings?
3) Does the estimate include self employment tax + federal? What about state taxes?
When I put in $80K to the tax estimator tool, it says my estimate is ~$15K, which is only about 19%, which seems low. There was also a ~$41K deduction amount, equalling taxable income being at about $38K.
I do not understand where these numbers are coming from 🙂
