I'm an independent contractor, when I'm estimating my tax payments, do I include my spouses income?

[Saruby]

I just started working from home, I'm trying to figure out my estimated tax payments for this year.  On the 2017 Estimated Tax Worksheet, Line 1 (AGI)- do I include my spouses salary as well as my expected income?  Or just my income?  My spouse receives a w-2 and has taxes withheld through his company,  the company I work for doesn't give this option.

[JaimeG]

If you are a Joint Filer you should enter the information as it is on your Tax Return. Essentially you and your spouse share the AGI from a Married Filing Joint return so you would enter this value to calculate your 1040ES. The IRS States as such regarding Estimated payments:

"If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return."           

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

The Federal Withholding from your husband's paycheck is also considered towards this estimated Payment amount during the year. Nevertheless it is advisable to make the highest Estimated Payment Possible. This will help in keeping Penalties away but above all provide Peace of Mind.

[rogo2020]

I have the following questions and hope you can assist me. 

My spouse receives 2w and I am a freelancer (518210 code), we file jointly and plan on doing so for 2019 tax year.

IN FORM 1040ES: 

1) Line 1-Adjusted Gross income you expect in 2019: 

I believe I can find my AGI is on line 31 from Schedule C) Would my husband's be on Line 37 of Schedule 37 on 1040, 2018 Tax form? 

For clarification on line 1, since we're filing jointly, our AGI should be combined, correct? 

2) 2a Deductions: 

Should these include #8 (itemized deductions from form 1040) and should any deductions from Schedule C be included in this line? 

Finally, on form 1040ES are there other entries where I should be concerned about entering my spouse's information as well or would the rest just apply to me as a freelancer? 

Thanks so much for your assistance!

[IreneS]

When completing Form 1040ES, please keep in mind the following:

1) Line 1 - Adjusted Gross income (AGI) you expect in 2019: 

• Yes - Since you are filing jointly, your AGI should be combined.  This can be found on line 7 of form 1040.  

2) Line 2a  - Deductions: 

• Yes - Enter the deductions listed on line #8 (the standard deduction or itemized deductions from Schedule A).

• Do NOT include any deductions from Schedule C.  They have already been accounted for on Schedule C and your net self-employment income is included in the combined AGI. 

Since you are filing jointly with your spouse, enter all the information with both of you in mind!

If you prefer, you can use TurboTax to prepare your tax estimates for 2020 (& print vouchers).  Please follow these steps:

@rogo2020

1. In your return, click Federal Taxes > Other Tax Situations.  [If this is your first time in the return, TurboTax may ask you some questions before taking you to Other Tax Situations.]
2. In the Other Tax Forms section click the Start/Update box next to Form W-4 and estimated taxes.
3. On the screen, Adjust How Much Tax You Pay, click the No box.
4. On the Review Your Estimates screen, click the Review Now box.
5. You can continue through the screens and enter your information.

[rogo2020]

Thanks Irene for the helpful response! If I choose Turbo Tax, will the taxes be for 2019? I noticed your response says if I choose to them through TT they would be for 2020.  Just clarifying. 

Also, can you tell me if the only forms I need to file complete as a freelancer are Schedule C (which I keep for my records) and 1040-ES to send in? Or are there additional forms I need to complete in order to file? Thanks again so much! 

[xmasbaby0]

The tax returns everyone is working on now are for 2019, the tax year that just ended.  The 1040ES forms that will print out with your 2019 tax return will be forms to send to the IRS during 2020 to pay your estimated 2020 taxes on a quarterly basis.

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

As an independent contractor you will complete a Schedule C to show your business expenses.

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct