Tax ourselves a little at a time or at end of year?

Discussion in 'Trucker Taxes and Truck Financing' started by VLAtl, Oct 18, 2018.

  1. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    Send in estimated payments every quarter. You don't even need a return. Throw them a couple thousand. It helps at the end of the year as well cause it 6 or 9 thousand you don't need to come up with.
     
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  3. Scooter Jones

    Scooter Jones Road Train Member

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    The late penalties aren't that steep IF you don't show much net income.
     
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  4. win-some-loose-less

    win-some-loose-less Medium Load Member

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    .

    I never pay quarterly and neither does the the wife, the penalty is small and it is worth telling the irs to stick it until April and not have to fool with it. they can wait.. I want to say it’s only 3% of what you owe.... don’t quote me tho.. keep in mind you will pay the same penalty if u underpay, so screw em
     
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  5. tucker

    tucker Road Train Member

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    You’re the man!!
    Instead of paying them less you’re paying them more.
     
  6. DSK333

    DSK333 Road Train Member

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    I think the penalty is up to about 6 percent for not filing quarterly payments. No way would I file quarterly reports. Paying IRS taxes on what you THINK you may owe at the end of the year is straight up Federal theft. That's my money to use when I need or want to. They're not getting an interest free loan from me all year. Working capital stays in my hands until I file a Schedule C.
     
  7. win-some-loose-less

    win-some-loose-less Medium Load Member

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    I’m not volunteering to educate folks on money at such a low rate....
     
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  8. Accidental Trucker

    Accidental Trucker Road Train Member

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    You only need to pay quarterlies if you owed the IRS money at tax filing time the previous year (and you are still in business). If you pay yourself a wage (and withhold accordingly), you can easily hit it pretty close on the nose with the withholding so you don't have to worry about the quarterly filings.
     
  9. Ridgeline

    Ridgeline Road Train Member

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    Not all the time, they will force you into a monthly payment with interest on the amount plus fines added in.

    The IRS knows these games, they will audit you and they will find other things to disallow.

    So the best advice is not to be cheap, put a third aside for taxes as you earn it.
     
  10. Scooter Jones

    Scooter Jones Road Train Member

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    I'm set up as an S-corp. I pay myself a salary once a month. The withholdings are calculated in QuickBooks Payroll.

    I am set up for EFPTS for the Feds & State. As soon as I take my salary, the calculated taxes are sent in by me pronto.

    Every quarter I print out the required 941 form & State form which are already reconciled as paid on Quickbooks Payroll. Sign, date & mail in. I do the required annual reporting forms via QuickBooks Payroll as well.

    It's easy as pie. No accountant/bookkeeper needed. No penalties or under-reporting issues either.
     
  11. Accidental Trucker

    Accidental Trucker Road Train Member

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    You're not making any sense.

    1) Yes, all the time, if you are a new business owner or if you did not owe any federal income taxes the previous year, no quarterlies are required.

    2) If no taxes are due, I will happily comply with a monthly payment schedule... of $0.

    3) Books are books, and they are completely within the law. The IRS doesn't "come in and disallow" randomly. Nice part of operating within the law; you don't have to worry about the IRS.

    4) A third of gross to set aside for taxes is an absurd number. An O/O averaging $2.50 a mile for a 100K miles (250K gross income) should set aside $83K for tax purposes? Nonsense. 25% of the NET is a way closer number than 1/3rd of the gross.
     
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