"Phil Marti" <prm20871[at]verizon.net> wrote:
- quote -

My wife does consulting work for the Md State Dept of Educ.
They don't take withholding. She's an independent
contractor. I do some substitute teaching and to compensate
a little I take no exemptions and even increased my
withholding. I even increased my withholding on our MD
State Teacher's Pension so that's why I wasn't sure if
enough withholding was going to cover the $ she makes from
the MSDE. They only call her in at various times.

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Mark 212 <mark...[at]comcast.net> wrote:

- quote -

Is there some reason why she can't have withholding taken
out of her payroll check? That would be easier than fretting
about estimated tax payments.

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Mark 212 <mark...[at]comcast.net> wrote:

- quote -

You can send in your payment in May. Whether you will be
penalized or not depends on how much tax liability you have
when you file next year, how much withholding you had on any
W2 income and when her Schedule C income was earned. You can
read all about it on Form 2210 and the instructions for it,
including the method to calculate annualized income.

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"Mark 212" <mark212[at]comcast.net> wrote:

- quote -

In your case the penalty would be calculated as interest
from 4/15/2007 to the earlier of 4/15/2008 or the date paid.
So yes, go ahead and send it in.

An alternative, if you're subject to withholding, is to have
some extra withheld from your pay. Since withholding is
applied equally over the year when considering estimated tax
requirements, that would eliminate the need to make
estimated tax payments and avoid any penalty.

Details are in IRS Publication 505.

--
Phil Marti
Clarksburg, MD

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I wasn't sure my wife and I even needed estimated tax tax
installments for 2007 because the income without withholding
that my wife earns is sort of hit or miss as a consultant.
However she has been working pretty steadily 3 days a week;
I think to be safe I should send a quarterly payment. Is the
April date when the tax is due hard and fast? Is there a
penalty for sending it in May?

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >