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My question is how to go about setting up our SE quarterly payments based on 90% of 2007 income when I have no clue what my wife may earn in 2007?

I'll be happy to put in a plug for our board's own edcosoft, resident expert on all things estimated tax. Since I find myself in your situation this year I'm also thinking of using the tool you'll find at www.edcosoft.com.

A note about the difference between planning for and making estimated tax payments. Because I know I'll be in the 15% Federal and 8% state brackets, I stash 40% (includes self-employment tax) of every gross self-employment receipt someplace where I know I can find it, be it for an ES payment or to pay come April 15. This results in my being able to give myself a "refund" from the tax account when the dust settles. But more important, I have the money to pay the taxes when they're due without pinching my budget.

Phil
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