[Hidden-tech] Question re: finances

[Edbride-PR]

Ron,

Please clarify whether you really do mean "quarterly estimates," or
"quarterly payments, based on estimates"?

I've always been told that in order to escape penalty, your quarterly
*payments* must either be 25% of the current year's obligation, or be equal
to at least 100percent of last year's payments; even if you under-pay based
on current obligation, you will avoid penalty if you satisfy the latter
requirement.
        I have been penalized for not doing so. That is, you need the money
each quarter, not just in April.

Ed

----- Original Message ----- 
From: "Ron Miller" <ronsmiller at comcast.net>
To: "Don Lesser" <dlesser at ptraining.com>
Cc: <hidden-discuss at lists.hidden-tech.net>
Sent: Friday, July 14, 2006 7:17 AM
Subject: Re: [Hidden-tech] Question re: finances


>
> ...if you are a sole proprietor you
> don't really need to worry about this on a monthly or even quarterly
> basis, so long as your quarterly estimates are equal to at least 100
> percent of your previous year's taxes. Of course, you still need to have
> the money you owe come April, so you need to make sure you've set aside
> enough to cover yourself for that eventuality.
>
> In addition to taxes, you should also consider contributing the maximum
> amount you can to a SEP IRA (or similar self employment retirement
> vehicle) as this can significantly reduce your tax burden. In a sense,
> you pay yourself instead of the government.
>
> I would suggest, however, that you consult with a good accountant. I've
> worked with John Sherbow at McGonnigle, Sherbow and Delisle for several
> years and he is extremely professional and competent.
>
> Ron
>
>
> Don Lesser wrote:
> >    ** Be a Good Dobee and help the group, you must be counted to post .
> >    ** Fill out the survey/skills inventory in the member's area.
> >
> >
> > When I was a freelancer, I simply took 25% of every check and deposited
it
> > into a separate bank account BEFORE I DID ANYTHING ELSE with the money.
As
> > long as I had the discipline to do that, I had my quarterly payments.
You
> > might want to go to 35% to guarantee you had enough.
> >
> > Don Lesser
> > Pioneer Training, Inc.
> > 14 Bobala Road
> > Holyoke, MA 01040
> > (413) 536-1030 (phone)
> > (413) 552-0472 (fax)
> > dlesser at ptraining.com
> > www.ptraining.com
> >