If you are married and file jointly you can have your spouse

• Tax question for a new IC? - Laura
  • first year as IC, you don't have to make payments...sm - Old MT
  • If you are married and file jointly you can have your spouse - me
  • IC can file estimated x4 annually or....nm - pay all at once in April, I do this...*S*
    • Yeah, but... - don't you have to pay in advance for the year?
      • however, when I first started out, I DID....sm - pay all at once in April, I do this...*S*
      • no, 4/2006 payment is for 2005 year...nm - pay all at once in April, I do this...*S*
        • this yr you have til 4/17 (4/15=Sat)..sm - pay all at once in April, I do this...*S*

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taken out of their check or you can pay estimated quarterly taxes.  You can print the forms from IRS website.  You pay quarterly but you don't do your taxes until January just like everyone else. 

I'm not an IC, but my company only pays federal taxes and not state because they are in a tax-free state.   The first couple of years I underestimated and got hit with a penalty, but after that just took the previous year wages and divided them per pay period to figure out how much extra to have taken out of DH check.  We got back about $900 in state taxes the last 2 years, but I don't want to decrease what we have taken out because line counts fluctuate and DH is in a commissioned position so his check fluctuates too.  I'd rather be over than under. 

If you have joint income the IRS does not care where the tax comes from (either partner), as long as it is paid.  You can take out a loan to pay your taxes or pay by Visa.  They just want their money.    I have done this for 18 years and I do know what I am talking about.  When I was married I always had my husband over withold and so we never paid quarterly taxes.   After you do your schedule C to see what your "NET" income is after deductions you add that onto your husband's should you be married and then you pay your taxes on that plus if you owe for social security taxes.   If he holds enough out to pay for your SS tax, that is also fine.  All they want is for the bottom line of taxes to be paid.   If you don't believe me go to an accountant as I have suggested to get you started.   Also if you have held out too much, they will refund to you even though the money was held from his checks and not yours.   This is no different than if you were both employees working and filing a joint return, you are basically your own employer, hence "independent contractor".    You lump all income into one pot and pay the taxes.  We even had to pay before but the penalty we had to pay was so little it was not worth it to me to do quarterly.   At the end of the year the IRS just wants their fair share or unfair share shall we say.  Again that is why I suggest when starting out you get information from the "experts" as it is money well spent.   Good luck.  Patti