Hoping someone can help me with this question. I'm not really tax savvy and feel like I'm missing something. I'm using QB Self-Employed and just input all my financial data. I had about ~$26K in revenue for the 1st two quarters and ~$6K in expenses. So there's a profit and I expect to pay taxes. I saved a few thousand for this. My spouse is a W-2 employee and earns 80K/year. When I added my spouse's income + selected married filing jointly, the software says I owe $0 in estimated taxes for both quarters. We will be filing jointly. But $0 in estimated taxes didn't seem right, so to test my theory, I removed my spouse's income and selected single filer. Then the software said I owe ~$1600 in Q1 estimated taxes and ~$1900 in Q2 taxes - which is similar to what I was expecting to pay. Does adding my spouse's W-2 income really wipe out my estimated taxes like that? If so, how does this work? It seems too good to be true and I don't want to fail to make payments that I should be making.
Yes, the information you entered in the Tax Profile section plays a major role in calculating your estimated tax in QuickBooks Self-Employed (QBSE). One of the benefits of filing jointly typically provides married couples with the most tax breaks.
You can check out these following articles for more information: