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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: nebroots February budget||Date: 1/24/2007 3:43 PM|
|Author: 6Bitsadollar||Number: 246041 of 309605|
Hi from Molly who also does contract work
The quarterly tax that keeps getting mentioned is to cover not only the income tax due on your earnings but also any self employment tax due on your contract work. You need to check with DH as to how much his withholding is and whether it was enough in 2006 to cover any additional
tax due to your contract work.
If you got a large refund on your 2005 tax return, you may be okay.
If you owed additional taxes last year, you probably aren't unless he has changed his withholding. The threshhold for owing SE tax is pretty low. On your 1040 it is added to your income tax to equal the total tax due.
I don't remember the rules for the childcare credit, but check that out for the period you have a sitter while you work. My younger child is in college so I don't have a good grasp on the details of this anymore--
The IRS has several publications that can help you with this--I don't remember the numbers of the pubs, but look for ones on Self Employment and Estimated Tax
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