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Do any of you guys or gals pay taxes on what you earn? Do yall have any problems with the IRS? Thanks in advance!
12-22-1999, 06:36 PM
yes I pay taxes. You should as well. There will not be trouble with the IRS if you claim your income and profits. Consult an accountant or help in this area .
12-24-1999, 08:09 PM
this is a pretty serious question. failing to pay taxes on income earned MIGHT be called income tax evasion. a nicer subject to discuss on this forum than to be discussed in federal court!!! "taxes and death" usually discussed in the same breath. my advice...if you run legit, you can tell it like it is and sand tall, if it's legal, clam it!!! don't look back. HOWEVER, if someone else does your taxes, you should understand what the implications are if they are wrong or lie on your return. this does happen.<p>merry Christmas to all! outside of religous implications, Christmas is for lovers and children. if you are either...you should be considered one of God's miracles. a fan of lesco bids all SEASONS GREETINGS!
12-25-1999, 08:26 AM
I find that it is a lot easier to pay my taxes than it is to run all over town cashing customer checks at different places. It was a real shock my second year though. I made more money doing this than I did working at a local Phone company making $18.00 an hr. Got into a higher tax bracket. :)Thank GOD for expense's. I do question the part where I have to pay extra for being self-employed though. I don't think that is fair, but I pay it. The real reason, I pay is because it is the law. And I damn sure don't want to tangle with the IRS. They usually will catch you and they usually win.<p>Jim
01-05-2000, 05:34 AM
I have always paid taxes. I use a good accountant. The IRS has a way to estimate how much money you make. By how much your bills(rent, house payment etc.) are. I read an AP story where a man was fined 25000$$ + his taxes. For not paying the right amount. They even used his credit card records to see how much money he had spent on a vacation. It has been shown that the IRS goes after those that can least afford to defend themselves. Why lose sleep over something that sooner or later you will have to do. You may need these tax records to get a loan too. Especially being self employed.<br>Charles
01-05-2000, 07:16 AM
Yeah, that's right, why lose sleep? Plus, if you run "below the table" that's where your income will ultimately stay. I know of a few guys who "play the game" and make okay money, but all the guys who make serious money in the lawn business are straight players.
01-05-2000, 10:40 AM
Pay the taxes and be able to sleep at night. Reporting your income and paying the sel-employment tax is also the only way you will ever qualify for social security if this is your full-time business. That means you're covered for social security disability benefits as well, which is probably more important to most of us and our families right now than the retirement benefits.
Okay. I am part time now and should I report what I have made during the summer? It was not what I made on my regular job.<br>Thanks in advance!!
01-05-2000, 05:11 PM
GLC, all income must be reported. From every job source. Just being parttime has no bearing on whether you pay taxes on that income. The IRS will include it with your fulltime job. Although you should list it seperatly. I would itemise because you have more expenses with the lawn service business.<br>Charles
05-13-2003, 01:46 AM
I pay my taxes quarterly. Makes it easier at the end of the year when you dont have to pay it all at once.
If you are self-employed then you are required to pay your federal taxes quarterly. That is what the 1099-ES vouchers are for. If you pay them all at once for the year (April 15th) you are subject to penalities....I learned the hard way. It cost me about $500 MORE than what I would have had to pay had I done them quarterly. And that was my first year in the business and my net income was really small potatos to begin with. :(
The last three years I have been paying them quarterly...and I must admit, it sure is easier to come up with the payments in that fashion than it is to wait and try to come up with a whole years worth...right at the begining of the season.
The self-employment tax is your social security payment. If you do not pay taxes to the US Dept. of Treasury (IRS)....then you are not accrueing any Social Security. Do not confuse Social Security with welfare. One MUST pay into it to get any back in the future. In the case of NOT paying Federal Income Tax I hope that one is investing in a retirement plan of some kind...or saving that cash like crazy (but it wont keep up with inflation rate at the LOW interest rates savings accounts are paying out these days). And forget buying anything 'big ticket' that needs financing...like a house...or applying for a small business loan at the bank. They want PROOF of income...in the form of 1040's for three straight years (in most cases). They could care less if you are sitting on a pile of cash............
Don't muck around with the IRS. When you do eventually get caught the fines and penelties will KILL you! There was a roofer that got busted here a year or two ago...did not pay in for 5 years before they caught up to him. To make matters worse, he was paying his helpers cash 'under the table' too. Once the IRS figured his back taxes, his employees back taxes, the fines, the penelties, and he paid off his lawyer for keeping him out of prison.........he could have bought a decent sized house. No sheet! Cost him close to $250,000 smackers. He wishes he had just payed his taxes like he was supposed too (estimated at around $40,000-$50,000). :cry:
05-13-2003, 04:31 AM
I just sent the IRS a nice, fat quarterly payment. But strangely enough I'd rather send them a big check than send the insurance company a little check.
05-13-2003, 07:43 AM
Everyone should also consider incorporating. It dosen't cost any more in taxes, you are an employee of the corporation and the corporation then pays the employers 1/2 of the social security, which is then a legitimate deduction. Also, as an employee you qualify for unemployment benefits in winter and are covered by workmans compensation. In addition to above reasons I incorporated to have the extra layer of protection of my personal assets. If one of the employees runs over someone with the truck, throws something with a mower and hurts someone bad, my personal assets are protected (somewhat, but more than if I was sole-proprietor), if my 3,000,000. worth of liability insurance isn't enough. My accountant figures it costs me about $150 more per year to be incorporated rather than sole proprietor.
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