Quarterly Estimated Taxes

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transistor

transistor

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Sep 30, 2007
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So, I just recently found out that I'm supposed to be paying my taxes quarterly since I'm a sole proprietor. I tried to read the directions on the IRS website and it's making my head spin. Does anyone here do this on their own? I don't really want to spend money to talk to an accountant. Actually, I'd rather not pay any taxes at all. How hard (and safe) would it be to deduct business expenses so I wouldn't have to pay any taxes? My only real business expenses are web hosting and domain registration. Could I start including all everything I purchase, like clothes, gas, food, and even my college tuition? I'm going to be making a lot more than I spend this year though, so I wouldn't be able to completely eliminate my tax liability, would I?
 


In the UK, you can claim back just about everything. McDonalds? Business lunch lol same with fuel etc just fire all your receipts in. If you have a good accountant they can work it out so you pay nothing.
 
On the form that you use (from the irs website) to send in with your estimated taxes is an estimated taxes worksheet.

I do the worksheet and send it in with the attached coupon thing.
 
I pay estimated quarterly taxes.. I usually pay the same amount each quarter, based on what my estimates are during the April 14th filing. If you don't pay quarterly, you can just pay everything at the end of the year; but that can be a huge risk as shit adds up.

I pay an accountant every year to calculate / deduct everything out in April; then follow his recommended amounts for each following quarter that year. You don't need to be exact though; the difference will come out in the end of year filing.

For federal, I believe the form is a 1040EZ(?) - I just paid it the other day..
 
I'd invest in an accountant, there is simply too much stuff to try and figure out. I mean, you can certainly do it yourself but there are lots of things deductable you'd never know. You are taking a risk if you label every expense as deduction of course. If you get audited, the jig is up, as they say. But a good accountant can tell you far into the grey you can go without going into black.
 
I went to an accountant and he pretty much turned me away with some basic instructions on how to do it on my own. Afterward, I filled out the IRS worksheet with the help of some google references and it wasn't as painful as I had expected.
 
How much and you guys deducting per year?

If I were to set up an LLC, could I keep my money in the company and reduce my tax rate?
 
Bro... I'll say this as nicely as possible but the understanding you have of taxes is not good. Therefore you need to invest into an accountant. It's really not that expensive and it'll save you money in the long run.

No matter what you're going to have to pay taxes but the accountant will tell you what you can deduct. You'll want to make sure to talk to them about this as well as if setting up an LLC will save you anything (which I don't think it will).

You can't just reduce your tax rate.

Additionally, you can say whatever you want with little accountability. So I could say Yes, you can deduct your college expenses when you really cant.......
 
get on that, and pay quarterly....there is now a fine at the end of the year if you don't pay your taxes quarterly. You also avoid some potential red flags if you pay your 4th payment before January 1st....just saying.
 
Just count yourself lucky that you don't have to do it monthly.

And definitely find a good accountant. They are more than worth it.
 
transistor said:
How much and you guys deducting per year?

If I were to set up an LLC, could I keep my money in the company and reduce my tax rate?
Click to expand...

If you dont incorporate, you end up paying more self-employment taxes.
I set up an s-corp last year.
Also a corporation, gives you some protection against lawsuits. It makes it more difficult for someone to come after you personal assets.
 
Since I've dealt with this a lot I'm going to post something about this in a new post with some other info.
 
I've been calling around to CPAs and they all want $150 to meet and do my estimated taxes every quarter. Is that a normal rate?
 
transistor said:
That makes me feel better. I thought I was getting ripped off. I thought I read on here that someone only pays $30/visit.
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$30/visit... for what? a visit to your local happy ending parlor? :1bluewinky:

As everyone else has said, definitely get a good CPA to handle this for you. It will pay for itself tenfold, both now and at the end of the year. Ask business owners around town about who they use, people will usually be happy to give you their opinion.
 
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