[Hidden-tech] Question re: finances

[Edbride-PR]

Let me clarify my post, using information that my tax accountant gave me
today. In order to escape penalty, you need to make quarterly payments,
unless you had NO tax obligation in the previous year from earnings from any
source (1099, W-2, whatever).

Regardless of what you make this year, if your quarterly payments amount to
at least 100percent of last year's payments (or obligation), you will escape
penalty. If you're having a really good year, you may have additional
payments to make in April, but there will be no penalty...unless you have
failed to make quarterly payments on time.

Hope this helps,
Ed

----- Original Message ----- 
From: "Edbride-PR" <Ed at edbride-pr.com>
To: <hidden-discuss at lists.hidden-tech.net>
Sent: Friday, July 14, 2006 10:44 AM
Subject: Re: [Hidden-tech] Question re: finances


>
> 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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