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Self Employed - How to set aside yearly taxes
Posted on 6/5/13 at 8:53 am
Posted on 6/5/13 at 8:53 am
I currently put the appropriate amount of taxes into a money market account monthly and pay the lump sum every April.
Is there a safe short term fund or investment that I can earn more on? Where does the self employed MT shelter their taxes?
Is there a safe short term fund or investment that I can earn more on? Where does the self employed MT shelter their taxes?
5
Posted on 6/5/13 at 8:53 am to jsquardjj
You should be paying quarterly taxes.
Posted on 6/5/13 at 9:00 am to Broke
quote:
You should be paying quarterly taxes.
If you don't you may face penalties and interest for violating the "pay as you go" requirement.
Posted on 6/5/13 at 9:10 am to LSURussian
my taxes are removed quarterly automatically based off previous years earnings, so just pile money into your bank account and dont worry the irs will take care of it for you
Posted on 6/5/13 at 9:10 am to Broke
quote:
You should be paying quarterly taxes.
Posted on 6/5/13 at 9:13 am to LSURussian
Ahhh, bad news. First I had heard of quarterly taxes but looks like I will need to start paying them. Thanks for the heads up!
Does it matter if I also receive a small W2 from one of the companies I consult for? Technically I am an employee of that company but it is less than half of what I make untaxed on my own. I have been doing yearly taxes the same way for 5 years and have not been penalized so far.
Does it matter if I also receive a small W2 from one of the companies I consult for? Technically I am an employee of that company but it is less than half of what I make untaxed on my own. I have been doing yearly taxes the same way for 5 years and have not been penalized so far.
Posted on 6/5/13 at 9:19 am to jsquardjj
You should be paying quarterly taxes. The shitstorm that will rain down on you when they realize it is going to be nasty. Go handle your business.
Posted on 6/5/13 at 11:27 am to jsquardjj
Keep using money market, pay quarterly taxes. You have until the 15th to send your estimated tax payment and voucher.
You get up to 2.5% penalty for each month after missed payment, plus an underpayment penalty, plus interest which is compounded DAILY. The penalty rate and interest rate is pretty much whatever the IRS decides.
PAY THE frickING THING and keep those vultures out of your life.
You get up to 2.5% penalty for each month after missed payment, plus an underpayment penalty, plus interest which is compounded DAILY. The penalty rate and interest rate is pretty much whatever the IRS decides.
PAY THE frickING THING and keep those vultures out of your life.
Posted on 6/5/13 at 11:37 am to jsquardjj
My company is an LLC treated as an S-Corp. I pay myself a salary and taxes are held out of each paycheck. I make sure that I over withhold. It's not a perfect situation but I really don't want to write a huge check every April.
Posted on 6/5/13 at 12:18 pm to Broke
quote:
You should be paying quarterly taxes.
Dumb question. How are the quarters measured? Is the end of June the end of the first quarter, with the fourth quarter coming at April filing deadline, or is it strictly by the calendar year?
I ask, because I switched at mid-year from employed to self employed in 2012, so I was OK for the first two quarters of having paycheck deductions. I ended up owing from the half year or so of having no deductions, paid that in April and have not paid a quarterly payment this year.
If I set it up for June, will I be able to make payments in June, October, January and at filing deadline and cycle it that way?
This post was edited on 6/5/13 at 12:19 pm
Posted on 6/5/13 at 12:34 pm to CourseyCorridor
June 15th, Sept 15th, Jan 15th, April 15th. Are the due dates
ETA: meant to say Sept 15th not Oct 15th
Corrected
ETA: meant to say Sept 15th not Oct 15th
Corrected
This post was edited on 6/5/13 at 1:03 pm
Posted on 6/5/13 at 12:52 pm to Vols&Shaft83
quote:
June 15th, Oct 15th, Jan 15th, April 15th. Are the due dates
Close but not exactly. The third quarterly payment date is September 15, not October 15.
And to further confuse everyone, this year the dates are different because the 15th falls on a weekend or holiday for two of the due dates.
For 2013 tax year the dates are:
1st payment: April 15, 2013
2nd payment: June 17, 2013
3rd payment: Sept. 16, 2013
4th payment: Jan. 15, 2014*
Here is a link to the form which the taxpayer must file with his estimated tax payment: Form 1040-ES
Posted on 6/5/13 at 1:04 pm to LSURussian
frick, I meant September, corrected. 
Posted on 6/5/13 at 2:38 pm to BACONisMEATcandy
My wife has her own business and it was always a challenge to set aside money regularly so we had the funds each quarter. I opted to increase my payroll tax deductions (state and fed) and no longer wory about it. I know, too lazy.
Posted on 6/5/13 at 3:27 pm to jsquardjj
This thread led me to check my past returns, in which I discovered I was paying penalties for not doing quarterly the past few years. I might not make the extra "interest" I was originally looking for, but at least I will save on these fees AND realized I need a new tax guy.
Sometimes I am overwhelmed by my own financial stupidity.
Thanks for all the info.
Sometimes I am overwhelmed by my own financial stupidity.
Thanks for all the info.
Posted on 6/5/13 at 3:31 pm to jsquardjj
quote:
Does it matter if I also receive a small W2 from one of the companies I consult for?
Doesn't matter. If you do any work that results in a 1099 then you need to do it. I have to pay quarterly this year even though less than 5% of my income last year came from some side work that I did resulting in a 1099.
Posted on 6/5/13 at 9:07 pm to jsquardjj
you pay quarterly taxes and if you do not you will owe penalty pay you taxes or bama gonna come get you
Posted on 6/6/13 at 8:19 am to 756
I have a question about quarterly taxes. I'm a student with a part-time research job but I also own an LLC which I provide training services through - no retail.
I keep good track of my accounting and I don't make a whole lot of money through it because it's only part time work. Do I need to be paying quarterly taxes on this too?
I keep good track of my accounting and I don't make a whole lot of money through it because it's only part time work. Do I need to be paying quarterly taxes on this too?
Posted on 6/6/13 at 8:28 am to mohalk
I believe the threshold for having to pay estimated taxes is $1,000.
IOW, if you anticipate owing $1K or more in taxes when you file in April, including self-employment taxes, you need to submit quarterly estimated taxes.
I'm sure you could google it or do a search on the IRS.gov website.
IOW, if you anticipate owing $1K or more in taxes when you file in April, including self-employment taxes, you need to submit quarterly estimated taxes.
I'm sure you could google it or do a search on the IRS.gov website.
Posted on 6/6/13 at 12:32 pm to LSURussian
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