Filing your taxes

[Crazymcnick]

Hey how do you guys go about keeping your fed income tax and all the other taxes separate? I was thinking about putting about 40% of everything I make into my savings account... Good idea? Isn't Fed Income Tax just insane like 30%?

Thanks
Tom

 

[Jeff Madsen]

Tom,

Keep in mind this advice is free and might be worth what you paid for it! You need to find a good and patient CPA. You will likely end up incorporating as there are legal and tax advantages to that. If you are smart about it, and hire good people to help you, you're tax burden will not be anywhere near thirty or forty percent. Staying a sole proprietorship business is almost never the right decision, again, just my opinion.

 

[ACE]

I’m thinking about incorporating at the end of the year too. It’s the self employment tax that kills me 15% off the top before income tax. And for what? Social Security and Medicare that will be long gone before I retire. Form what I understand, you can cut the SE tax in half by incorporation, but as Jeff said tax planning isn’t the board’s strong suit. The IRS has this silly idea that the money is theirs as soon as you make it not at the end of the year. The penalty for not paying in quarterly is very small and you could make money by putting it in a savings account, but not much with today’s interest rates. You are probably better off paying estimate quarterly tax so you don’t get caught off guard at the end of the year. I just sent in a fat check to pay off my 08’ taxes because I failed to pay estimated taxes and got behind.

 

[Guest]

:shock: :?: :roll:

Man that sounds like a load; you wanna put someone on your payroll to do what with a little reading and learning your taxforms, pubs, and taking a tax prepare course on line form the IRS it is free!!

 

[Crazymcnick]

What about just saving all the receipts from products, equipment, etc and also saving all receipts you get from doing jobs and just going to H and R block and having them do it? anyone ever take that route?

 

[Jeff Madsen]

Best move I ever made was finding a quality CPA. It freed me up to focus on things that actually make me money. There is no comparison between do-it-yourself, H & R Block and a CPA. Completely different worlds. Frequently, a sharp CPA will save you money in addition to the headaches they save you.

 

[Steve in Omaha]

what Jeff said.

Incorporate and opt out of the Social Security Madoff scheme to a large part.

 

[Steve in Omaha]

Mikey ol'pal

wtf???? I said Madoff scheme

 

[Steve in Omaha]

Bernard Madoff

 

[steve frasier]

Best move I ever made was finding a quality CPA. It freed me up to focus on things that actually make me money. There is no comparison between do-it-yourself, H & R Block and a CPA. Completely different worlds. Frequently, a sharp CPA will save you money in addition to the headaches they save you.

8)

What about just saving all the receipts from products, equipment, etc and also saving all receipts you get from doing jobs and just going to H and R block and having them do it? anyone ever take that route?

:shock:

 

[Able 1]

I give my tax lady a box of receipts and my invoices for the year and it's done, and done right.. 8)