I know if I pay 100% of prior year taxes I will be ok, but I’m trying to figure out exactly what is considered part of prior year taxes from the W2.
Let’s just say this is what our documents look like.
Joint 2018 Tax Return: Line 15 Total Tax - $5,000
Wife 2018 W2: Federal income tax withheld - $3,000
Wife 2018 W2: Social Security tax withheld - $3,000
Wife 2018 W2: Medicare tax withheld - $800
How much would I need to pay for quarterly taxes
to be considered having paid a 100% of prior year taxes for safe harbor?
In the example above, $500 per quarter meets the safe harbor amount, provided that your wife has $3000 withheld throughout tax year 2019. What she has withheld for SS/Medicare does not factor in, but what you must pay in self-employment tax does factor in. (Which is included with the total tax figure on line 15).
Remember that you can always pay more tax, but you must at least reach $5000 this year.
In the example above, $500 per quarter meets the safe harbor amount, provided that your wife has $3000 withheld throughout tax year 2019. What she has withheld for SS/Medicare does not factor in, but what you must pay in self-employment tax does factor in. (Which is included with the total tax figure on line 15).
Remember that you can always pay more tax, but you must at least reach $5000 this year.