how to change withholdings

[Sam_2.0]

DH is considered self-employed (statutory employee, gets W-2's and 1099-MISC). I am employed by a corporation (W-2 income only). This was his first year, so he didn't have to file quarterly, or at least we didn't.

I definitely don't know enough about his business expenses to try to file our own taxes this year. TaxCut seems to have a program for this, but I would rather have a pro walk me through it.

Ok, main question. I adjusted my withholding last year to cover whatever income he brought in, which was not much. But next year with him filing quarterly and having to make estimated payments, I don't want to have too much withheld from my checks. Looking at the withholding calculators, should I withhold as if we are married filing separate? Can we file jointly? If we file jointly, does that mean they include my income in the quarterly estimates?

[TheOtherMe]

As long as you are married, you file jointly. If you are going to have a pro help you this year, have them determine what your estimated payments should be. You only have to pay in enough so that you will not be subject to a penalty for under payment of your taxes. The general rule is 90% of last year's tax liability.

After you sit down with the pro, you can decide how much to have withheld on your paycheck. You can have more withheld from it if that is easier than making the estimated payments. Taxes paid through withholding are considered made throughout the year.

Estimated taxes can sometimes result in a penalty if you have a windfall.

[commentator]

There are a number of ways to avoid a penalty for underestimating one's taxes. Pay 90% of the current year's tax is one. Owe less than $1,000 when filing a timely return is another.