Do you estimate your federal taxes?

[AnnieW625]

We had to pay the Feds $251 for 2016 and the Feds recommended estimating at a rate of $490 every quarter. I paid the first estimated payment for 2017, and if I follow through will pay again in June, September, and December. I am already at Married 0, and DH is at Married 2. The only reason I think I might continue with the estimated is because I am most likely getting a 15% raise this year (about $9700) and while I am not going to be changing my deductions with my luck I will still end up owing additional taxes (I have almost continually had to pay since 2011 even after I switched my deductions to zero). DH will also get an annual COL raise of 5% so that might effect things as well. Ugh I hate taxes (and I could continue to b!tch about this but I will stop).


Sent from my iPhone using Tapatalk

[JBaxter]

No we have DH set the deductions at work and its fine we usually get some back. We've never paid quarterly taxes in the 15 yrs I've been married to DH even when I worked full time.

[sariana]

Yes. There is such a huge difference between our incomes, and DH has two jobs, and it's impossible to deduct enough to avoid a tax bill and penalty. This year we are paying quarterly estimated taxes of about $4000 (each time). Last year we paid $2000 (so $8000 total), and it wasn't enough.

[Philly Mom]

I would have your DH change his deductions. Honestly, less than $1000 of additional taxes wouldn't make me change anything. I pay quarterly taxes but I am self employed. I am required.


Sent from my iPhone using Baby Bargains (http://r.tapatalk.com/byo?rid=87652)

[KrisM]

I used to have additional amounts taken out of my check, when I was single and had a mortgage to deduct. I'd work it so I owed or got a refund of very little.

We don't need to do that now. DH does need to change his withholding, as the refund we got is too much.

[georgiegirl]

We did for the first time last year at the recommendation of our accountant. However, we ended up overpaying by a lot, and now we have a big credit that will go towards next year. I don't know much about taxes, but if you only paid $251 this year, I don't see why you would need to pay quarterly.


Sent from my iPad using Tapatalk

[legaleagle]

You can set an additional manual withholding amount on the W-4 (line 6) in addition to adjusting deductions and you can change it at any point during the year by giving new W-4 to your HR department. I'm self employed and I just adjust DH's W-4 to cover my self-employment income and DH's relatively minor freelance work so I don't need to worry about quarterly estimated payments. Actually way overestimated this year but our income has been so variable with DH changing jobs and my maternity leave, etc, it's been hard to get a handle on it. (And hey, better refund then massively underpaying).

[Pear]

I just have my work withhold an extra set dollar amount every paycheck. It I isn't as accurate as filing estimates every quarter, but it is much easier, and I don't risk penalty for underwitholding.

[AnnieW625]

We did for the first time last year at the recommendation of our accountant. However, we ended up overpaying by a lot, and now we have a big credit that will go towards next year. I don't know much about taxes, but if you only paid $251 this year, I don't see why you would need to pay quarterly.


Sent from my iPad using Tapatalk

See that was my thinking as well. In 2013 we had to pay $1100 in taxes and the accountant my mom was an office manager for said to pay the first quarterly estimated tax and then change my withholdings from M3 to M0, which I did and it worked and we ended up with about a $200 refund for 2014, and $72 for 2015.

And yes for $251 I was really surprised that Turbo Tax suggested I estimate taxes. I am honestly happy if I don't have to pay more than $300 to either my state or the Feds., but of course want to keep it as close to zero as possible. I haven't mailed the estimated payment so maybe I will skip the estimating all together.


You can set an additional manual withholding amount on the W-4 (line 6) in addition to adjusting deductions and you can change it at any point during the year by giving new W-4 to your HR department. (And hey, better refund then massively underpaying)......

Yes btdt for my state taxes. I could do it for the Feds as well, but think I will finally have DH change his deductions to at least M1 or M0 (he is at M2 or M3) for the rest of the year and see if it makes a difference.


Sent from my iPhone using Tapatalk

[o_mom]

We did last year (and previous years) when I was self-employed. Now that I am employee, we just manage it through paycheck withholding. The paycheck deductions are much more forgiving when it comes to underpayment vs. quarterly estimates. I would just adjust your DH's withholding.

[marymoo86]

No just change your withholding. Usually variable incomes or self employed only estimate quarterly taxes.

[hillview]

yes we are starting to

[meggie t]

In my experience with Turbo Tax, any time you owe anything, it says you should do quarterly estimated taxes. The several years that we owed it said that but we never filed estimated taxes. We just finagled our withholdings at work.

[Kindra178]

Owing $251 to the federal govt seems to me that you figured out your withholdings perfectly for the year. If you said you owed $3000, I would feel differently. Remember, you got to keep more of your monthly earnings! In light of the raise(s) coming your way, you may want to change deductions, but I think you are doing great.

[belovedgandp]

I consider +/- $500 to be about as dead on as you can be in a given year. We've just adjusted withholdings from paychecks when life/job/income changes throw things way out of wack.

[o_mom]

In my experience with Turbo Tax, any time you owe anything, it says you should do quarterly estimated taxes. The several years that we owed it said that but we never filed estimated taxes. We just finagled our withholdings at work.

This is true. There should be another option in TT for adjusting your W-4.

Remember, too, that the withholding will go up to match your raise, so it isn't like 2 exemptions = X dollars, it is based on the amount of tax you are expected to owe if that is your salary all year long.

I would run the W-4 estimate in TT and see what it suggests. You can always re-estimate after you get your raise to change it for the rest of the year.