Paying IRS $5200-$9600

Here's an easy rule of thumb. That's about 10% of my gross revenue.

So your's should be about the same. My standard deduction is $12K now.

If you're married, it's $24K. That's freaking huge. So if you're married, maybe 9%.

 

Throwing away receipts? That needs to come to a screeching halt. Throwing away proof of your expenses means it is your word against the government when it comes to the taxes due.

Paying monthly won't hurt anything as long as they are paying reasonable amounts of money. Quarterly is how most people do it if they prepay, but whatever floats their boat.

But throwing away proof of expenses? That will destroy them. Either they will not claim deductions at all and pay FAR too much in taxes, or they will try to claim deductions without proof, which will cause an enormous ####storm during the first audit.

 

I know I am the one who brings to the forum all this negative stuff but ...

I recommend an accountant to do your books and to do your taxes at least for a few years because of a few reasons BUT the biggest reason is they are normally good at organizing things for your business and sometimes force you into good habits.

Throwing receipts away is stupid, not dumb but stupid, there is money in them, but if you thrown them away and you get audited, without any legal (EA) or accounting advice, you will be screwed over by the auditor, they make their brownie points by maximizing the check you have to sign.

 

Then talk to your accountant, there is something about having about engaging them to give you legal advice that beats out answers from a forum.

 

Just expect the penalty for not having paid your tax liability in on a timely manner. Not sure now..but think it used to be you had to have 80-90% of you taxes sent in by October of the tax year. If you over pay, just roll it over onto next years tax.

 

Thats correct. Smart advice, not cb radio, or big rig Bob. No receipts..its not gonna be your word against auditor..it will be no deduction for you.

 

that's good, too many think this is all the right advice and too many just want to hear what they want. Wise to take this approach.

 

So why ask for options on here instead of using speed dial?