What if I’m self-employed and pay estimated taxes?
Eligible taxpayers who are self-employed can adjust their quarterly estimated tax payments to account for the ‘Making Work Pay’ credit. Care should be taken before doing so because self-employment income fluctuates, and a quarterly underpayment could occur even if you have a refund at the end of the year. Still confused? You’re not alone and that’s why the tax analysts from The Tax Institute at H&R Block have developed a ‘Making Work Pay W-4 Withholding Calculator’ to help. This calculator will help you estimate the overall reduction in your withholding due to this change compared to the credit you expect to claim on your 2010 return. This Tax Tip is brought to you by The Tax Institute at H&R Block. The Tax Institute at H&R Block is the go-to source for objective insights on federal and state tax laws affecting the individual. It provides nonpartisan information and analysis on the real world implications of tax policies and proposals to policymakers, journalists, experts and tax prepa
