Comments on: My New Life w/ Quarterly Taxes. Ugh.

By: J. Money

J. Money — Sat, 12 Jul 2014 02:42:43 +0000

In reply to Megan@MommaLovesMoney. Def. good to watch for! I know there's a certain amount where you'll get penalized if you don't pay throughout the year, but I believe it's a high one so you may be fine as-is. As for how much to pay/etc, I leave it all up to my accountant :) I hate dealing with all that stuff and she's always saving me bank in the end so it's awesome. And when income changes, I just alert her like I did this past week, and she updates estimates for the future.

By: Megan@MommaLovesMoney

Megan@MommaLovesMoney — Thu, 10 Jul 2014 12:16:17 +0000

My website doesn’t make nearly as much as yours does but I should probably start thinking about these self-employment taxes. How do you even do this?

By: J. Money

J. Money — Fri, 13 May 2011 15:29:26 +0000

@RDF – Oh dang, that sucks – I’m sorry to hear it :( There’s GOTTA be something you can do in this case? I don’t know what happens personally if you can’t make the payments, but hopefully someone here will chime in and help. Have you already asked your accountant? (stupid question, I know, but I’d imagine she/he’d know best! ;))

By: RDF

RDF — Fri, 13 May 2011 05:20:40 +0000

I wish mine was $5.5k. I am paying $8.5k every 3 months. And the bummer thing is that is based off what I made the previous year. This year I am making less but still need to pay the taxes of what I made last year. So in reality, I am making even less this year to put in my checking account. Last year I made less than I made the previous year so I put quite a bit less in my retirement, right? Nope it actually hurt me big time because now I had less of a tax deduction thus paid more taxes than any other year that I’ve been self-employed (10yrs). I am getting it from both sides, actually three: Make less, save less, pay more taxes.

I always set aside a percentage of money from each client’s check to pay my taxes so I’ve never been in trouble paying my quarterly’s but now with making less money, setting aside that money is going to be tough considering my normal bills haven’t changed much.

Found your website because I was googling what happens if you don’t pay that amount the accountant figures I am suppose to pay every 3 months. I can pay some just not all of it….
Anybody know?

By: J. Money

J. Money — Sun, 24 Apr 2011 23:23:45 +0000

@Whitney Hess – Haha… and I’ll take your income in return! ;)
@Dave – Oh man… yeah if you’re trying to scare me it’s working ;) This whole thing is so knew to me, but it seems if I pay the same amount for this year, at least, I’ll be on track – even if I get some back from overpaying at the end. But if I do super well, then I just have to pay more at the end just in 1 bigger clump, yes? Good problem to have as long as I am putting aside that % every time and not slackin’ – which is my main focus right now. That way whenever it’s needed, I have it there in the account no matter what. Only 1 for 1 right now though, so we’ll see what happens the rest of the year ;)

By: Dave

Dave — Sun, 24 Apr 2011 01:10:00 +0000

Ok, heres what absolute sucks about quarterly taxes. I pay 1/4 at each payment of what I paid the previousyear so I am sure I dont get hit with penalty. If your income goes down either in one quarter, or year, the payment must be made to avoid the penalty. If your income goes up, then on April 15 of the next year you owe the balance, PLUS 1/4 of the taxes you paid the previous year(thats a big hit). You might say well if you didnt make it you cant pay it, but the IRS considers the year, if you didnt pay the 1/4 in say June and a increase occured in the last quarter, you were underwithheld/ underpaid for the year and subject to penalty. This doesnt include, state, and local income taxes that must be dealt with

By: Whitney Hess

Whitney Hess — Sat, 23 Apr 2011 17:30:19 +0000

Try $12K every three months. I’d take your $5K any day :)

By: J. Money

J. Money — Fri, 22 Apr 2011 16:26:14 +0000

Yep, can’t complain about that for sure. I might go the S-corp route later in the year all depending. Right now the LLC is still helping out w/ stuff and I can deduct a lot working from home too :)

By: Andy

Andy — Fri, 22 Apr 2011 14:36:37 +0000

Look at the upside – at least you are making the money to pay taxes (sounds like it is a nice amount too, considering that 65% would be around 7K). I hired an accountant, paid her $300 a month to take care of my taxes and payroll. Also I suggest you incorporate as an S-corp and you can deduct a whole bunch of stuff which should bring down your expenses.

By: J. Money

J. Money — Thu, 21 Apr 2011 18:34:11 +0000

haha yup! there’s that too ;)