[Hidden-tech] Question re: finances

[Rikk Desgres]

If you paid $1000 in taxes (not last years estimates but total taxes) last
year you must pay as least $250 each quarter this year even though you may
owe more. In April you pay the difference. Next year you pay 100%/4 each qtr
equal to this years total.

Rikk
-- 
Rikk Desgres
Pinehurst Pictures & Sound
http://www.pinehurstpictures.com
(413) 584-6200

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on 7/14/06 10:44 AM, Edbride-PR at Ed at edbride-pr.com 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.
> 
> 
> 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
>>> 
> 
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