I thought I had a decent understanding of estimated taxes, but now I'm confused. I was a high school teacher who received a W2 and now receives a pension. My wife, while she did occasional consulting between jobs, was a W2 employee until last May, at which point she became a self-employed consultant.
When I did our 2023 return on TurboTax, for the purpose of 2024 estimated tax, I projected that she would earn twice what she earned as a consultant in the six months of 2023. She has already earned more than twice, and if my current projections are correct, she will earn close to 4x what she earned last year.
I assume that I'm supposed to revise the estimated tax worksheet in light of the expectation of increased income? For AGI, in addition to my pension and our interest earnings, should I use my wife's consulting income through August or my estimate of her income through the end of the year? Do I deduct expenses? What about what should be a hefty contribution to her SEP?
Thanks in advance!
When I did our 2023 return on TurboTax, for the purpose of 2024 estimated tax, I projected that she would earn twice what she earned as a consultant in the six months of 2023. She has already earned more than twice, and if my current projections are correct, she will earn close to 4x what she earned last year.
I assume that I'm supposed to revise the estimated tax worksheet in light of the expectation of increased income? For AGI, in addition to my pension and our interest earnings, should I use my wife's consulting income through August or my estimate of her income through the end of the year? Do I deduct expenses? What about what should be a hefty contribution to her SEP?
Thanks in advance!
Statistics: Posted by anonenigma — Sat Sep 07, 2024 11:47 am — Replies 2 — Views 188