Mr. A and I spent a couple of hours this morning going through his mileage records and got those accounted for on my 2008 mileage spreadsheet. That enabled me to finish up our income taxes.
We’ll owe $137 to the Federal government, but we’ll be getting just over $250 back from the state.
I also went through the planning feature that TaxCut offers to see what we need to pay for estimated taxes. It’s really difficult to know how much Mr. A will make and what kinds of deductions he’ll be able to take, but I put in some estimates. High on the income, low on the deductions. We will need to pay $900 each quarter, based on the business Mr. A has done this first quarter, and figuring the amounts I’m having taken from my check. That’s pretty hefty, and I’ll definitely be watching closely.
I need to learn more about estimated income taxes. For example, let’s say Mr. A’s business slows way down for the next quarter. Do I recalculate what will be owed, and then make a smaller estimated tax dependent on the new numbers? If I stayed with the higher amount we’d end up with an overpayment.
Does anyone know? Please leave me a comment if you have any knowledge on this.