I have LLC and spouse is w2; w2 does extra withholdings to cover my LLC taxes

[asking0809]

I have an LLC and do not pay quarterly taxes. My spouse works a w2 and does extra withholdings each pay period to cover my taxes. Is this okay? I am not a S or C corp. I noticed that since doing this my taxed income on my social security account seems VERY low. I am not sure why.. is it because I am not paying taxes directly? Hope this makes sense.

[MinhT1]

No.

The extra withholdings on your spouse's W-2 will serve as a credit on your joint return so that you don't get penalized for lack of estimated taxes.

But the self-employed taxes that you pay on your self-employed income are credited to your social security account.

[CPA2]

From your description it sounds like you are a single member LLC.  As such, your earnings should be reported on Schedule C.  You probably did this.  But if your social security tax doesn't seem right, go back and review your answers regarding self-employment earnings, etc.  Take a look at form SE and see what's reported.

As to your wife's withholding, yes, it is appropriate for her withholding to be applied to your joint income tax liability.

[mj-askformarcusj]

If your you and your wife are filing jointly, there should be no issue with your annual tax liability (joint income; joint liability). 

Since you do not file quarterly returns and still have a self-employment tax liability, you should be filing form 944 and W-3; the basis of which is your gross revenue (from the LLC), if a sole proprietor or your salary if you carry yourself, as an employee.

Hope that helps.