EchoMom 06:18 AM 07-15-2012
I have been in business for 6 months now and have not yet filed as I'm still trying to figure it out (just bought Tom's book and read it in 2 days, I LOVE doing taxes! Weird, I know!) I was planning to do it at the end of the year, am I allowed to do that? Are there penalties for not filing quarterly?
And, can I still do my taxes on TurboTax Online???
Originally Posted by glenechogirl:
I have been in business for 6 months now and have not yet filed as I'm still trying to figure it out (just bought Tom's book and read it in 2 days, I LOVE doing taxes! Weird, I know!) I was planning to do it at the end of the year, am I allowed to do that? Are there penalties for not filing quarterly?
And, can I still do my taxes on TurboTax Online???
No penalties for filing at the end of the year, and yes you can still use TurboTax Online, I used them last year. You just have to use the Business Edition instead of the Personal.
TomCopeland 08:51 AM 07-16-2012
There will be a penalty for not filing until the end of the year if you owe more than 10% of your taxes for the year.
You should be paying in at least 90% of the taxes you owe each quarter. This can be done if you are married by having your spouse withhold enough to cover you. Most married providers fall into this category. If you are single, then you must file quarterly.
EchoMom 09:36 AM 07-16-2012
Thanks Tom, how do I know how much extra my husband request to be paying in?
TomCopeland 01:51 PM 07-17-2012
Originally Posted by glenechogirl:
Thanks Tom, how do I know how much extra my husband request to be paying in?
A rough rule of thumb is that you will owe 20% of your gross income to cover federal taxes (social security and income taxes). If you have been getting tax refunds in past years, you may not need to have your husband withhold extra amounts.
jlewis 10:42 PM 07-19-2012
That would depend on the business type and the area you are on. On my places, there are some clauses that would allow you to set things up on a yearly basis which works really well for me. Saves you the hassle and would make things appear better from all sides of the coin. Only downside is that you need to be really sure about everything just like that.
EchoMom 05:38 PM 07-21-2012
My husband works for Goodwill (as a support staff for DD individuals) and for some reason despite the number of dependants he claims they are taking ZERO in federal taxes from his paycheck. State and local come out but NOTHING for federal. Any idea why this is???? And I'm worried we'll get SLAMMED at year's end when nothing has been taken out in taxes and at least I will owe from daycare income.
TomCopeland 10:25 AM 07-23-2012
Originally Posted by glenechogirl:
My husband works for Goodwill (as a support staff for DD individuals) and for some reason despite the number of dependants he claims they are taking ZERO in federal taxes from his paycheck. State and local come out but NOTHING for federal. Any idea why this is???? And I'm worried we'll get SLAMMED at year's end when nothing has been taken out in taxes and at least I will owe from daycare income.
You will owe taxes and penalties if you have no federal income taxes withheld throughout the year. Have your husband talk to the human resource department about this.
It's possible that your husband's income is low, you have a lot of dependants and other personal expenses, and your business income is low, that you may not owe federal income taxes. Unlikely, but possible. In any case, he should follow up on this asap.