I made a quick stop at the post office this morning to send out my 3rd quarter estimated tax payments. This estimated payment is based on the amount of taxes I owed last year for my sole proprietorship. If you, too, need to make these payments, don’t forget to get them in the mail today.
Archive for category Taxes
Many Americans, including myself, feel that the stimulus checks being sent out by the US Government won’t work. A recent CNNMoney.com poll in which 1,000 people were polled, states that 82% of Americans think the rebates won’t work. Almost half the people said they would use the check to pay off bills, and another 22% said they would put the money in the bank.
Personally, I’m going to use my check to start at Roth IRA. How about you, what is your stimulus check earmarked for?
The Deadline Has Been Met
Apr 14
I finished my taxes tonight! They will be mailed out tomorrow, and that will be that. A few thoughts about my 2007 taxes.
- Having a CPA do my taxes was worth it (got some very good advice).
- Estimated tax payments would prevent year-end headaches.
- Writing large checks to the government isn’t fun.
- E-filing is way easier and better for the environment than printing and mailing in forms (next year I will be e-filing).
I stopped by my CPA’s office this morning to pick up my taxes. Unexpectedly, I owe $3,800 to the feds and $500 to the state I live in. At the beginning of 2007, I changed my withholdings with the expectation of offsetting the taxes I would owe. It appears those changes didn’t do as much as I expected them to. I did a few rough calculations before sending my paperwork and tax-related materials off to the CPA and my math showed that I would owe very little, if anything. I must have miscalculated or forgot to include something. To be sure, I checked over the forms tonight when I got home from work and they all appear to be correct.
This is not the first year that I’ve owed a sizable amount to the IRS. Although I have the money to pay the taxes, it still hurts a little to part with it. The main reason I end up owing each year is due to the income I make on the side from Web development work and several Web sites I run. I could lessen the sting each April by making quarterly payments, but I’d rather make the money work for me during the year in a high-yield savings account. I may have to rethink this strategy.
I need to make some time to meet with my CPA to see what steps I can take to reduce my tax bill in the future.
If anyone out there has some tips or ideas, I’d like to hear from you.
Tax preparation isn’t a whole lot of fun, but I don’t have to tell you that. In years past, I’ve been able to pull things together in a fairly short amount of time. This year, for whatever reason, has been a completely different story. I guess a combination of late forms and procrastination has delayed the entire process.
At last – I can finally say they’re ready to be shipped off to the CPA.
The whole process has put the spotlight on my less than stellar business record-keeping. I’ve been meaning to get everything that pertains to the business imported and categorized in Quicken. Doing that will allow me to easily get the information together that my CPA needs. It would also allow me to track my business expenses a little more closely.
I have a complete and efficient system for my personal expenses and accounts. The business accounts need the same thing. I guess I know what I’ll be working on next week – or maybe the following week.
Anybody have tips on getting started with a proper system for the business?
By now I’m sure you’ve heard that the economic stimulus package has been passed. However, maybe you haven’t heard that this is not free money from the government. Rather, it’s a tax credit advance.
The wife and I have decided that we’re going to save our rebate check. We could go out and spend it on something shiny and new, but that wouldn’t do much for us. We’re in the process of saving for a house so maybe we’ll just put it toward that. But then again – we should also start Roth IRAs. The money won’t be here for a while so we have some time to decide. The only thing we’re certain of right now is that we’re not spending it.
What do you plan to do with your rebate check?
Bankrate.com has an article that outlines 7 different things that terrify taxpayers. In all honesty, some of the items on the list forced me to find a CPA this year. Here’s the list:
7 reasons taxpayers tremble
1. Afraid I can’t do my taxes myself
2. Afraid I’ll overlook a tax break
3. Afraid I’ll make a mistake that will cost me money
4. Afraid that my tax adviser is incompetent or a crook
5. Afraid I’ll get audited
6. Afraid to e-file because my personal info could be lost or stolen
7. Afraid to file because I can’t pay
It used to be that I did all my own taxes, but a few years ago my filing got a little more complicated. Even after these changes I continued doing my own taxes – surely missing out on tax breaks and paying in more than I should have. I finally came to my senses and decided that I could spend my time doing more productive things than taxes, so I sought out the assistance of a CPA. Shortly after sitting down with him, I quickly learned that there were a bunch of things I had overlooked. It’s his job to keep up with changes in the tax code – so I’m happy to part with some money to save myself time and aggravation.
How about you? Do any of the items on this list make you tremble? If so, will you have someone else prepare your taxes for you?
