I recently started working for a small business consulting company. I am paid by my boss via personal check, no taxes deducted. I know I have to pay taxes on my income, but the when and how and how much I should set aside are my biggest concerns. I just don't know where to start or my best course of action.
I am married (spouse is a regular W2 employee), I have three children and own a home. If any of that matters, I don't know.
1. How much should I set aside from each check?==========no need to set aside since you are a self-employer, an independent contractor, you need to file sch c of 1040 aslongas the amt on line 29/31is $400or more and also need to file sch se of 1040 once amt on line 2/3 is also $400 or more:if you are a W2 employee, then, Tax Form W-4 is used by your employer to withhold the proper amount of federal income tax from your paycheck. Form W-4 allows an employee to specify the number of exemptions, and optionally, any additional amounts to be withheld from their paycheck.
2. Can I pay once a year when we file my husbands return?=========
3. Do I pay quarterly and if so, what forms?==========it depends: Individuals, including sole proprietors, generally have to make estimated tax payments if you expect to owe tax of $1k or more when your return is filed. If you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to withhold more tax from your earnings. To do this, file a new Form W-4 with your employer.
You don?t have to pay estimated tax for the current year if you had no tax liability for the prior year. You were a U.S. citizen or resident for the whole year. Your prior tax year covered a 12-month period
4. Are fees for filing quarterly (if required) deductible?============correct. Fees you pay to an irs enrolled agent/a cpa can be deductible when you file sch c of 1040 on return on line 17.