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Author: Cainhoy Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121341  
Subject: Estimated Taxes Date: 3/28/2000 1:13 PM
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My wife just started a job where they withold no taxes...just pay her a commission. Do we just estimate and pay (quarterly) the taxes per publication 505 instructions or are there separate payments for Social Security? Thanks in advance!
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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32793 of 121341
Subject: Re: Estimated Taxes Date: 3/28/2000 1:22 PM
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I take it your wife is considered a self-employed independent contractor.
In that case, she pays her own social security taxes, which is included in her quarterly estimated tax payment.
She would be eligible to set up a SEP IRA for retirement purposes, also.
Best wishes, Chris

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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32806 of 121341
Subject: Re: Estimated Taxes Date: 3/28/2000 3:31 PM
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My wife just started a job where they withold no taxes...just pay her a commission. Do we just estimate and pay (quarterly)
the taxes per publication 505 instructions or are there separate payments for Social Security? Thanks in advance!

You need only increase your withholding to cover last year's tax and you'll have no penalty. Pay the remainder next April. See Form 2210.

Yes, she'll complete a form SE to figure her Self Employement SS Taxes, which are included in your 1040 taxes (and estimates if you make them).

Or use our Quarterly Tax Calculator on www.edcosoft.com to compute the minimum quarterly payments to make in addition to your normal withholding. Ed



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