Anyone else finalizing their taxes right now?

[GN One Day...]

Need a break! I've been putting off finalizing everything, can't do that much longer. Time to bite the bullet and write the check! Who else is doing their part tonight?

 

[TRBON8R]

Originally posted by GN One Day...
Need a break! I've been putting off finalizing everything, can't do that much longer. Time to bite the bullet and write the check! Who else is doing their part tonight?

I've been paying and then some. Look at the signature underneath my user name if you want to know how I feel. The bastards are trying to hit me for my year 2000 return, disallowing every single one of my deductions and saying I owe them money. They can eat the corn out of my (you fill in the blank).... If worse comes to worse I'll sell my GN to my best friend for 100 bucks (after all it's only an old worn out '87 Regal) and get everything I own out of my name before I'll pay those blood-suckers what they are trying to claim that I owe (which I don't). I already paid them. I don't owe them a penny, but at the same time I know they are in the driver's seat and they will resort to extortion to get some amount of cash out of me since my number came up and they have to justify the audit. I'll write them a check to get them to go away if they propose any kind of settlement that is reasonable, but if they try to force me in to a corner and in to total destitution, I'll tell them to go F themselves. The way I feel right now, when they come to collect they better bring the entire Treasury Department.

 

[bandwidthpolice]

It's always better to pay a bit than get a ton back. Remember, if it's in your bank account, it's earning interest (hopefully). If it's in their bank account, it's not earning interest for you. Some folks are bad savers and fool themselves into thinking that a refund is some sort of bonus. A refund is a free loan to the government plain and simple. They absolutely won't loan you money for free, ever. Fair is fair. Put a few bucks in a separate saving account through the year and you'll not feel the effects so badly. Make sure your wife/girlfriend knows what this is and make sure you remember too; it's not a rainy day TR-fund. Prepare your taxes a few weeks in advance of 4/15 and fire off the check on tax day. You'll thank yourself down the road. Don't believe me? Ask MileHighGN. He may look buzzed but he knows what time it is. Hehe

 

[GN One Day...]

I agree. I have to pay quarterly estimated taxes, but this time hurts a lot more than the informal payments. I keep a money market account for the tax purpose money, and the "big one" I just sent off. I'm open for any more advice! I don't mind paying taxes, but it still aches writing that check! I keep thinking of a client that I had who didn't pay taxes. Filed a "tax statement" instead. He'll get held accountable eventually, I'm sure of that, but people cheating the system while I'm writing checks chaps my a$$.

 

[gnXfan]

I also pay quarterly. I had my final tax return done last month by my CPA but didn't send in my final payment until this past Saturday. The remark about interest in your account is right on. Its better to have it then to get it back. But in general the population is bad at budgeting and treat the refund as found money - really its a christmas club account with negative interest.

 

[BoostKillsStres]

Talk about hating taxes, I had to pay self employment taxes because I was an independant contractor last yr and didn't form an S corp like my friend told me to Let me tell you, its not much fun paying an additional 12.9% tax just because your working for yourself.....Its like the govt doesn't want people working for themselves, they only want corporations.

 

[gnXfan]

Originally posted by BoostKillsStres
Talk about hating taxes, I had to pay self employment taxes because I was an independant contractor last yr and didn't form an S corp like my friend told me to Let me tell you, its not much fun paying an additional 12.9% tax just because your working for yourself.....Its like the govt doesn't want people working for themselves, they only want corporations.

I found out the same thing. Basically, before any deductions, you are paying 40% taxes if you work for yourself...

 

[TexasT]

Why not form the S corp this year

I know it seems like a hassle to form an S corp but look at the benefits and what can be "written off" and you'll see that a small hassle reaps big rewards come tax time. Get organized and keep good records. It's easy once you get in the habit of collecting the receipts and writing down what you spent your money on. Remember read the rules carefully as the rules are made to have "loop holes" as the people writing them have businesses too. They want to keep as much of their money just like you do and collect as much as they can from the unsuspecting, but not from themselves. Also might look into a good accountant. This small expense could save you 2-3 times what the fees cost. Just a thought.

Rich

 

[gnXfan]

Re: Why not form the S corp this year

Originally posted by TexasT
I know it seems like a hassle to form an S corp but look at the benefits and what can be "written off" and you'll see that a small hassle reaps big rewards come tax time. Get organized and keep good records. It's easy once you get in the habit of collecting the receipts and writing down what you spent your money on. Remember read the rules carefully as the rules are made to have "loop holes" as the people writing them have businesses too. They want to keep as much of their money just like you do and collect as much as they can from the unsuspecting, but not from themselves. Also might look into a good accountant. This small expense could save you 2-3 times what the fees cost. Just a thought.

Rich

A) Without a doubt, get a cpa if you are self employed.

B) Get a credit card that you only use for the biz. I use my American Express for the biz only - it keeps receipts for me! Right down to the tip.

 

[TurboJunky]

http://www.vortexmediagroup.com/images/banghead.gif

 

[GN One Day...]

The self employment tax covers our contributions to social security, FICA etc. I refuse to do the math to see if I'm getting ripped for that more than a W2'd person.