My wife is a therapist and owns her own PLLC. I am a salaried W-2 employee. I added her expected income in for my withholdings when I completed my paperwork with my employer and they asked if there was more than 1 job for the household. My company takes out extra withholdings based on the combined income. Does my wife still need to file estimated quarterly tax payments?
Hi Doclaw67,
Thank you for asking. You did a good job to have extra withholding at your W-2 for your wife's income. Although you have done the withhold, it is hard to estimate exactly if the withhold would be enough. Using the tax calculator at the end of year will be able to better estimate if your withhold enough to cover for both you and your wife's income. If you found you still owe more than $1000 in tax, please pay the estimated tax by Jannuary 15th to avoid any underpayment penalties.
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This is a great question and you are so smart to ask it!!!
You do not have to send in estimated tax payments if you take extra withholdings from another W2 job.
It is so much easier to have your W2 employer pay the 'estimated taxes' for you.
What I would suggest is doing a tax estimator to see if you are going to owe anything for 2023. If you are going to, then change your W4 again and add a bit more to cover that amount due. This will go on line 4 c of the W4 (extra withholdings).
Here are my two favorite links for tax estimator. Remember that they do not save so they will time out.
Here are my other 3 favorite Self Employment links for you to look over:
Self employment tax hub with calculator
Self Employment income and expenses
Thanks again for the great question!!
Katie S