Originally Posted by LWICD:
I own a large center licensed for 102 children. We are growing fast but we have not officially made a profit. We keep money in our business account but that is because bills are spaced out. If you look at the end of the month expenses are still more than income. My question is what are these quarterly tax payments and how are they estimated. We opened March 25th 2013 I didnt pay any for 4/15/13 deadline. I run the daycare and up until last week I also worked a 20-35 hr week at my last job. My husband also works a full time job outside of the center. I only have done one owner draw for 1000 and i used it for supplies for the center. I did this because my bank deposited the check into my business account and I paid for the purchases out of my personal account before realizing that it would not be an expense from business account. So i entered it as income and then did owner draw to pull it back out then put it back into my personal account to cover my supplies I order from my personal account. That set aside how do I figure what I owe quarterly? Also is this pretty much the "taxes withheld" from the business income or owner income. Meaning if I get 200000 of income from parent payments but after bills and payroll I make 50000 then do I pay estimated tax on the 50000 or on the whole 200000?
You would pay taxes on the $50,000 (your net income/profit).