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  #1  
Old 04-07-2013, 08:53 PM
grassmasterswilson grassmasterswilson is online now
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Paying estimated taxes

For those who pay estimated taxes every quarter. Have you figured a way to accurately get the payments right so you don't pay a lot in April?

With our business fluctuating so much I find it hard to figure. If I buy a piece of equipment it changes. If my business grows every year I'm stuck with a big payment due.

Plus you have taxes and quarter 1 due by April 15.
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Old 04-07-2013, 09:01 PM
jc1 jc1 is offline
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Ours are set based on the previous years tax return. As the season goes you should have a good idea if your numbers are better. If so you can increase it. It stinks under estimating and having a good year.
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Old 04-07-2013, 09:14 PM
grassmasterswilson grassmasterswilson is online now
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Quote:
Originally Posted by jc1 View Post
Ours are set based on the previous years tax return. As the season goes you should have a good idea if your numbers are better. If so you can increase it. It stinks under estimating and having a good year.
Yeah I follow the previous years recommendations. I've been growing at a 15-20% rate, buy some big equipment some years. It's just hard to get it right.

It would be nice if there was a multiplier you could use for each quarter based on gross income or gross minus equipment.
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Old 04-07-2013, 09:35 PM
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Landscape Poet Landscape Poet is offline
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I have the same issue. I pay based off of last years but my growth rate leads me to paying more at the end of the year because of the gain. I am not sure there is a way to be accurate until sales level out a little more and growth slows.
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  #5  
Old 04-08-2013, 07:17 AM
jc1 jc1 is offline
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If you are using quickbooks and look at monthly reports comparing previous years, it is fairly easy to pay extra early on if needed.
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Old 04-08-2013, 07:23 AM
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Efficiency Efficiency is offline
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Why wouls you ever over pay your estimated quarterlies? Thats throwing away money: your opportunity costs are hateful. Pay as little as possible and stomache whats due ONLY when its due
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Old 04-08-2013, 09:58 AM
205mx 205mx is offline
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Here's a question, do they need to be equal? I suppose I could ask my CPA. But I've always made them even base on previous year. But I feel I could estimate better if I could pay unequal payments. We make far less money In the first quarter, being a cash based business.
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Old 04-08-2013, 10:33 AM
Smallaxe Smallaxe is offline
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Ballpark estimates of your net times the 15% SS Tax, plus any income tax beyond the 12000 Standard Deduction at the graduated levels...
As a solo op it is quite simple for me,,, but for businesses with employees you should have monthly records up to date by the end of each qtr...
Otherwise last year's taxes +or-, will give you a close enough figure... I pay more during the busy time so I don't need to send so much after a long winter,,, with little income...
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Old 04-08-2013, 10:57 AM
205mx 205mx is offline
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Small axe this is what i was looking for
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  #10  
Old 04-08-2013, 08:32 PM
jc1 jc1 is offline
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If you are considerably ahead as the year goes it does not feel as painfull when you pay some extra. The excitement of a good season goes away quickly the first time you owe an extra 15k to the irs in April.
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