My wife has several part-time jobs with variable demand and therefore variable income.
Considering we filled in 0 exemptions on all her new jobs' W-4s, I am trying to work out if the estimated taxes that paid were correct (refer to
form 1040-ES). I came up with a spreadsheet like the one below:
For the C and D columns, I looked through all her payslips and added the amounts based on the period. For the total amount owed (column E), I added my own income to her income and figured out our tax bracket (we are filing jointly), then multiplied the C column by the percentage of our tax bracket. F is then the difference between E and D and therefore the amount I paid on each due date (column B). We don't have kids or any other types of credit, so I'm assuming the standard deduction is all we have to take into consideration.
I decided not to pay the estimated tax in installments.
So this is how I paid the taxes for her 2016 income so far. Does this sound correct to you guys?