Tax time..

I never pay quarterly, I just pay the penalties. I'm making more with the money that I'm not sending back quarterly, and with inflation etc they're getting even less when I hold out. I get this shit in the mail every year saying I need to pay quarterly, my accountant tells me to throw it in the trash.

Machdup1 said:

CPA looked at the budget instead of actual. I just applied it to 2017 taxes. It wasnot ideal, but I can’t really complain.

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What.....?

13COBRA said:

I hate tax time, I always owe, quite a bit.

For the 2018 tax season, yes I know it'll be slightly different than 2017, but I'm either going to pay in extra quarterly, or just divide the quarterly payments out to take $XXX out of each check.

What are your guys' thoughts? Who decided to file quarterly instead of just withholding more, and why? And vice versa.

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How is your business taxed

13COBRA said:

I hate tax time, I always owe, quite a bit.

For the 2018 tax season, yes I know it'll be slightly different than 2017, but I'm either going to pay in extra quarterly, or just divide the quarterly payments out to take $XXX out of each check.

What are your guys' thoughts? Who decided to file quarterly instead of just withholding more, and why? And vice versa.

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You could underpay some of your quarterly payments, as long as you pay the difference in at December as withholding, and not be considered late.

You take a payroll and the entire gross amount goes to federal withholding. But keep in mind this will be taxable income on the W-2.

I would consider the best way to acquire the cash to pay estimates. Based on how your business is setup, you could take a draw or pay yourself extra salary.

Or the guy above, and just not pay.

Zemedici said:

What.....?

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I'm guessing that his projected income for the year was much higher than his actual income. If we have a business like construction, business will fade closer to winter months, but the accountant accidently misprojects these months.

More income= higher projections.

Twisted2v said:

I'm guessing that his projected income for the year was much higher than his actual income. If we have a business like construction, business will fade closer to winter months, but the accountant accidently misprojects these months.

More income= higher projections.

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Correct.

IronSnake said:

I feel like middle class tax brackets are designed in such a way that you need to make the top threshold amount in your bracket, lest you get wrecked.

Bracket is

• 22%: $77,401 to $165,000.

You damn well better make above 100k otherwise your check is crap.

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This is me as well
I’m a salaried employee so my check is the same week to week I add X amount of
$ additional taken out every week,claim zero then at the end of the year claim 2 when I file.
My 401k and insurance are pre tax
I always get a small refund


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They took me for 3k out of pocket this year. I'm getting some state back, so it will soften the blow. I guess its better than last year when it was 6500. Maybe next year it will be better? Who knows...

I don’t file quarterly. I probably should hit I’d rather hang onto my money. I owe right at 67k this year

13COBRA said:

I was kidding..

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Oh ok. My bad.

Twisted2v said:

You take a payroll and the entire gross amount goes to federal withholding. But keep in mind this will be taxable income on the W-2.

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That's how I pay myself out of my Scorp. I have my base salary and pay FICA on that. Then whatever is left that I would normally net I just send off as additional federal taxes.



Trump doubled the standard deduction for married couples to $24k this year. So for those of you that have been itemizing and not getting near a $24k deduction you will benefit from this change he made. IMO he made some significant changes to help the middle class.

earico said:

Oh ok. My bad.



That's how I pay myself out of my Scorp. I have my base salary and pay FICA on that. Then whatever is left that I would normally net I just send off as additional federal taxes.



Trump doubled the standard deduction for married couples to $24k this year. So for those of you that have been itemizing and not getting near a $24k deduction you will benefit from this change he made. IMO he made some significant changes to help the middle class.

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Trumps plan next year will really help those in the $200-400k income range who file jointly with minimal work expenses.

We are going to be up $3k on his plan next year vs this year assuming income stays the same.

My CPA did a side by side 2017 to projected 2018 when we filed a few weeks ago.

#MAGA

earico said:

Trump doubled the standard deduction for married couples to $24k this year. So for those of you that have been itemizing and not getting near a $24k deduction you will benefit from this change he made. IMO he made some significant changes to help the middle class.

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Hmm good to know. Just got engaged. Need to look into the deduction differences. Had about 12k in itemized from the house and what not. But I filed single.

Sent my checks off this morning. Woohoo.

IronSnake said:

Hmm good to know. Just got engaged. Need to look into the deduction differences. Had about 12k in itemized from the house and what not. But I filed single.

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You're worse off from a deduction standpoint. The 12k standard deduction will wipe out any additional benefits you had from itemizing. Plus you're not receiving any personal exemptions for yourself (or kids, if any).

The newer tax brackets will offset some of this, but it depends on your income.

Twisted2v said:

You're worse off from a deduction standpoint. The 12k standard deduction will wipe out any additional benefits you had from itemizing. Plus you're not receiving any personal exemptions for yourself (or kids, if any).

The newer tax brackets will offset some of this, but it depends on your income.

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Now his standard deduction is going to be $24k. That is if he get's married this year.