What you claim on your W4 at work and on your tax return don't have to match. If you claimed Single at work they just take out more withholding so you might get a refund on your tax return. I'm married but claim Single at work to have more taken out to cover the increased tax on 2 incomes.
i would leave it Single at work and see how your tax return looks for 2019. If you get a big refund you can change it to Married next year.
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Yes you can so keep good records and receipts ... If you are new to being self employed and acting as your own bookkeeper and tax preparer you need to get educated .... If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income. So you need to keep your own good records. Here is some reading material…… IRS information on Self Employment…. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center Publication 334, Tax Guide for Small Business http://www.irs.gov/pub/irs-pdf/p334.pdf Publication 535 Business Expenses http://www.irs.gov/pub/irs-pdf/p535.pdf Home Office Expenses … Business Use of the Home https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction https://www.irs.gov/pub/irs-pdf/p587.pdf There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed .... http://quickbooks.intuit.com/self-employed Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C. You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 line 57. The SE tax is in addition to your regular income tax on the net profit. PAYING ESTIMATES For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017 SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket. You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply: - 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. - 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.) To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section. OR Go to…. Federal Taxes or Personal (H&B version) Other Tax Situations Other Tax Forms Form W-4 and Estimated Taxes - Click the Start or Update button
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Be careful though if you both have W-2 income. Changing the W-4 to married will result in less withholding and does not account for two incomes that when added together, pushes you into a higher tax bracket and you end up under withheld. Many married taxpayers with tow incomes intentionally use single on W-4 just so that more is withheld. Each employer withholds as if that was the only income, but when added together you can move into a higher tax bracket so more withholding (or paying estimated tax) is necessary. When both spouses work they might need to claim single and not exemptions to avoid paying additions tax or even having an addition amount withheld. This is very common with two incomes. See this FAQ: Why did my refund drop when I entered another W-2? https://ttlc.intuit.com/replies/3798403
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