That Taxing Time of Year
Ouch. It's always a bit painful to part with money. Yet at the same time the amount I send shows me how well I must be doing. Kind of sick though.(Ha)
I have a CPA who set me up years ago to pay my taxes quarterly. It does lessen the sting a bit, but still! Yikes.
Just a bit of advice to those who were bowled over by sticker shock of their taxes payable this year:
Well this is what I do....
At the end of each month, I look at my collected earnings and set aside (I use a money market account I jokingly call the "tax kitty") the 33 1/3% Federal and in California it's 5%.
I pay quarterly. But I have retained that income, so I am never short. And I ever dip into the tax kitty for other purposes.
Remember, if you combine the letters of the IRS, it spells, THEIRS!
I have a CPA who set me up years ago to pay my taxes quarterly. It does lessen the sting a bit, but still! Yikes.
Just a bit of advice to those who were bowled over by sticker shock of their taxes payable this year:
Well this is what I do....
At the end of each month, I look at my collected earnings and set aside (I use a money market account I jokingly call the "tax kitty") the 33 1/3% Federal and in California it's 5%.
I pay quarterly. But I have retained that income, so I am never short. And I ever dip into the tax kitty for other purposes.
Remember, if you combine the letters of the IRS, it spells, THEIRS!
Hey Bobbin!
I do the same thing! Except I do the transfer anytime I make a deposit.
Everytime I get paid I just transfer 30% of the amount to my "Tax" account.
And like you, I don't touch it for anything else! I also pay quarterly. The joys of running your own business!
Peace!
Liz