Am I the only dumbass that didnt put anything away for his taxes?
 

only halfway through entering my 1099's in turbotax and i already owe way more than i expected :1orglaugh im fucked

i hope i can find a way to write off a higher percentage of my biz expenses than last year :Oh crap

I had a budget and was putting away a good amount and then SMASH - the economy fell on me like a house on the Wicked Witch! So... yeah, I'm screwed too!

i cant believe how much i have to pay :( i really dont make enough to justify paying that

Pop out some childrens! ;)

It's simple. Just don't pay them.

Yea I have the same thing happening...... same story every year. :)

Make quarterly payments and that problem no longer exists.

Yep, do quarterly payments if you make a decent amount.

i was gonna for 2008 but i was so drained after the 07 taxes i needed everything i could get in my checking acct lol

My quarterlies are going to be a bitch this year. I've been putting it all away, but like a dumbass its just sitting in a bank account waiting for the bill, doing nothing for me. This year its going to at LEAST be in a money market, or maybe a sweep account.

Nope that's what most people do. :1orglaugh Oh well you learned your lesson this year.

I am in the dumbass club as well. I owe the IRS roughly 80k, trying to get them to settle with a lower amount. :disgust

i bought a $370 desk and can only write off like less than half of it what the fuck is that :mad::mad:

Uhh. You should let someone else do your taxes. :2 cents:

get a proper accountant...they can give you monthly figure to pay each month...or quarterly as some suggest...mine are in by the 5th of any month :)

I will never pay taxes again.

My accountant saved my ass. I went from owing the gov 3k$ to them owing me 5k$ this year :)

yep you can set up monthly payments, just estimate what you're going to pay based on previous years and divide by 12.

wow i need his number

Question on the quarterlies....

Do you have to estimate exactly what it should be, or can you just say, "ehhh, I think I'll send them bitches like 5 grand for now. Maybe they'll get 3 next quarter, then I'll just see what happens."

??

from what ive heard u just add up ur shit for that quarter every quarter...as long as theyre getting money they shouldnt complain but ive heard of people getting audited whove payed legit every year :Oh crap

Exactly.

You can also set up arrangements if you need to, but I believe, like anything the government is involved in, there are some strings. Probably some bullshit like 1 time, and can't be late again for 20 years or some bullshit.

I would talk to your CPA about options.

for that don't setup anything, pay as usual at the end of the year... but you can send whatever amount you want to them whenever you want, just when you do taxes at the end of the year you show your accountant how much you already payed... but even after doing that I have to pay shit loads :/ i feel you

if your using most of your income to pay taxes then you have some serious problems, find a good accountant to do your taxes and set you up with quarterly payments.

Another simple way to do it besides the quarterly thing. Take what bracket you are in (this is the one post expenses - aka taxable income). Take that bracket's percentage. Setup a savings account along side your checking account. Take the brackets percentage from each deposit right into the savings account.

So if you're in a 30% tax bracket.
Receive check for $1,000
Deposit $700 into checking
Deposit $300 into savings

At the end of the year, hire a really fucking good tax dude. Who -should- be able to get you into a lower tax bracket. Pay your taxes, and have some left over.

It'd be just like you work a "normal" job, and get a huge tax refund at the end of each year like all the "normal" joes out there.

1) Hire a CPA. A good one will save you far more than you have to pay him

2) Pay quarterly ONLY if you can't trust yourself to not spend the money during the year. The underpayment penalty is so low that it's actually profitable to just hold the money until April 15 and pay then.
Again, I can only advise this if you trust yourself not to blow it and then not have the money to pay the piper.

Actually it was like that for me when I first started.

When I first quit my day job to do this full time, I was barely making enough to get by, much less save for taxes....but I knew the only way I could grow the business was to work at it full time.

So when tax time came and I hired a CPA, I owed the govt $9K and only had about 2K, and that was just for the year before. That didn't count the first quarter of the year I was in.

I got all caught up and then some over time. It was the price I had to pay to grow my business....although it did feel weird when my income had doubled but I still had no money left over at the end of the month because I owed so much in taxes....but by the end of the 2nd year I was way ahead of the game and able to enjoy some of my newfound monies. :pimp

You get 100% of the first 10k.

I'm in the dumbass club too. How are u trying to get the irs to settle? Is this what they call "an offer of compromise"? Don't you need to show some hardship or inability to pay? How are u going about reasoning to them as to why they should settle with you?

Yeah its called something compromise. It is a one time break that the IRS will give to people who they feel are unable to pay the entire amount. I went and sat down with JK & Harris to see what they thought. With my current income there is no way the IRS would allow me to settle at a smaller amount. Off the record however I am finding more ways to reduce my net income so that it looks like I actually don't make much above my expenses, thus giving me a good chance at having the IRS settle.

And then when it comes out that you pay taxes, claim you forgot, didnt know how to use the software, say you are sorry, pay the taxes, then you too can become the head of the IRS

taxes suck man.

Nope higher taxes do not hurt small businesses. Just ask your friend Obama.

Care to elaborate? I have a good accountant but he doesn't reduce my net so significantly so that it looks as if i barely make anything. What did you do?

i got mine down to $1040 for 2008...still gonna sting though :(

quoted for truth

:thumbsup

You need a new fucking accountant.

I wish mine were $1040... LOL.

Are you doing things as a sole proprietor? It sounds like it. Go meet with an accountant, set up a corporation, and let them deal with this stuff from now on.

Your accountant can get everything set up properly. Put you on salary, even get you health benefits and retirement stuff... go check it out. If you run a business, you need to check it out.

That makes no sense. If the desk is used 100% for business purposes you can write off 100% of the cost.

Feel free to hit me up via email, I don't want to post the info here.

I only wish mine was 1k...shit I would give them 20k for 2008 and be happy. 2008 kicked my ass.

Huh? why only half, should be writing off the whole thing...

Man thats not a sting... thats a fucking fly bite!!!

I'm going to outsource paying my taxes to India.

Every accountant that I've seen has told me that it's not worth it to set up s-corp if you are making under 150k a year. Even if you're making low six figures, they claim that all the paper work etc is not worth saving a few extra thousands a year.

All of the paperwork? LOL. My guy must be magical.

It's practically nothing. You could check out an LLC instead.

S corp. Pay yourself shit.

:1orglaugh:1orglaugh:1orglaugh:1orglaugh

if you're only paying $1040 in taxes for the year then you probably made under $20k last year, so its probably not worth it to set up a corp just yet.

Good one! :)

maybe you'll get a nice IRS guy like Will Smith... ;)

You obviously haven't talked to many.

Here's a really simple scenario.

Let's say you make 100K. If you're a proprietor, you have to pay 12% social security tax on the entire 100K.
If you're an S corp or LLC (my company is both) then you can pay yourself a salary of say 30K, and take the other 70K as a dividend.
Now you're only paying social security tax on 30K, and not on the other 70K.

That's a savings of $8400/yr, just on that one thing.

You're either not being honest about having spoken to an accountant, or you talked to one who was an idiot.
If you don't like money, then just keep doing it the way you're doing it.

It makes sense if you understand the tax code.
You write off a portion when it's purchased, and then you claim depreciation over a period of time.
On the one hand you bought something for business use, on the other hand your business now owns an asset, so it's not like spending the money on electricity, or advertising.