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Level 1

2018 Quarterly taxes, married filing jointly, spouse with W2, I have 1099

Hi!

 

My husband has W2. I work as independent contractor on 1099MISC. We file taxes jointly in California.

 

By using 'safe harbour' rule, how shoud I calculate taxes we paid last year? Should I consider only my earning or our household gross income?

 

I assume I should also take care of estimated state tax myself and QB does not file it. How is it calculated? Should I use my own earnings or household income?

 

Thanks!

2 Comments 2
Level 15

2018 Quarterly taxes, married filing jointly, spouse with W2, I have 1099

If you are an independent contractor, then you have a business accounting file. The 1099 is info, it is telling you that you were paid that amount by someone and it is reported to the IRS too. The only impact that has on your tax form, is the when you enter total sales, it has to be entered in two blocks, amount reported on 1099's and income made but not on a 1099


filing jointing, both your incomes are combined. Fill out your business tax form, if it is a schedule C, then it is included with the form 1040, it is a partnership, then the partnership filed a form 1065 and gave you a form K-1 for your share, that K-1 is entered as part of the 1040 too.


Estimated taxes are a personal responsibility to calculate and pay quarterly, correct QB does not make the payment.


State taxes I can not help with, my state does not have personal income tax. But it sounds like you should talk to a local tax accountant.

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Level 2

2018 Quarterly taxes, married filing jointly, spouse with W2, I have 1099

Hi Amiora, To figure your your federal safe harbor for 2018, take a look at line 63 on page 2 of form 1040. this is called total tax. That is your tax for 2017. Now look at line 38 on the same page, adjusted gross income. If your adjusted gross income is less that $150,000 then use the total tax amount on 63 to be your safe harbor. If AGI exceeds $150,000 then take 110% of your total tax to calculate your safe harbor. Make sure you pay these taxes quarterly. If you meet the safe harbor at the end of the year but not during it, then you may get a penalty for underpayment of estimated tax. Alternative way to calculate the safe harbor is to pay 90% of the 2018 tax using the annualized method on form 2210. This is quite complicated to do. Plus the new tax law will shake things up a bit. Hope that helps.

joe

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