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+--- Thread: The time when being self employed stinks.....tax time. (/Thread-The-time-when-being-self-employed-stinks-tax-time)
The time when being self employed stinks.....tax time. - fredtoast - 04-18-2016
2015 was the first year i was entirely self employed.
I had made estimated tax payments throughout the year, but still ended up having to pay more when I filed my 2015 taxes.
In the past I adjusted my withholding to make sure that I did not get a large tax rebate, but it was always nice to get a few hundred dollars back even if it was my own money that I had already earned. Even though I did not have to pay a lot ($455) it still sucks that I had to pay instead of getting a rebate.
RE: The time when being self employed stinks.....tax time. - SunsetBengal - 04-18-2016
The CPA that I consult, says that the perfect return is one that shows you owing the FED anything less than $1000. That way they cannot charge you penalty and interest on your debt. She says that setting yourself up for a large return is a bad idea, as the government will only earn interest on your money, and not share any of the wealth with you.
So, according to the CPA, you did it right.
RE: The time when being self employed stinks.....tax time. - JustWinBaby - 04-18-2016
(04-18-2016, 08:48 PM)SunsetBengal Wrote: So, according to the CPA, you did it right.
Yep, but it gets complicated if you have uneven or irregular earnings, making early estimated payments too low.
I tell you, though...it's a real eye opener when nothing is withheld from your checks and you have to make big quarterly payments INCLUDING the employer's share of FICA. You feel good about how your bank account has grown, and then BAM! you send a check for 40% of your quarterly earnings to federal and state.....you really feel that pain.
RE: The time when being self employed stinks.....tax time. - SunsetBengal - 04-18-2016
(04-18-2016, 09:31 PM)JustWinBaby Wrote: Yep, but it gets complicated if you have uneven or irregular earnings, making early estimated payments too low.
I tell you, though...it's a real eye opener when nothing is withheld from your checks and you have to make big quarterly payments INCLUDING the employer's share of FICA. You feel good about how your bank account has grown, and then BAM! you send a check for 40% of your quarterly earnings to federal and state.....you really feel that pain.
That is what I miss the least, about no longer being self-employed.
RE: The time when being self employed stinks.....tax time. - BigPapaKain - 04-19-2016
Something I sure as hell don't miss.
RE: The time when being self employed stinks.....tax time. - michaelsean - 04-19-2016
(04-18-2016, 08:11 PM)fredtoast Wrote: 2015 was the first year i was entirely self employed.
I had made estimated tax payments throughout the year, but still ended up having to pay more when I filed my 2015 taxes.
In the past I adjusted my withholding to make sure that I did not get a large tax rebate, but it was always nice to get a few hundred dollars back even if it was my own money that I had already earned. Even though I did not have to pay a lot ($455) it still sucks that I had to pay instead of getting a rebate.
Don't you have to pay both sides of social security too? Do you do that with your estimated taxes?
RE: The time when being self employed stinks.....tax time. - Bengalzona - 04-19-2016
(04-18-2016, 08:11 PM)fredtoast Wrote: 2015 was the first year i was entirely self employed.
I had made estimated tax payments throughout the year, but still ended up having to pay more when I filed my 2015 taxes.
In the past I adjusted my withholding to make sure that I did not get a large tax rebate, but it was always nice to get a few hundred dollars back even if it was my own money that I had already earned. Even though I did not have to pay a lot ($455) it still sucks that I had to pay instead of getting a rebate.
(04-18-2016, 09:31 PM)JustWinBaby Wrote: Yep, but it gets complicated if you have uneven or irregular earnings, making early estimated payments too low.
I tell you, though...it's a real eye opener when nothing is withheld from your checks and you have to make big quarterly payments INCLUDING the employer's share of FICA. You feel good about how your bank account has grown, and then BAM! you send a check for 40% of your quarterly earnings to federal and state.....you really feel that pain.
Welcome to my yearly nightmare!
I have been self-employed for about 23 years. I put the business into an LLC and file Schedule C, which has helped a bit. But you don't dare miss the quarterly SS payments!
RE: The time when being self employed stinks.....tax time. - Bengalzona - 04-19-2016
BTW- You should have entitled this thread as "Being an Adult Sucks: Part 2"!
