How much TAX do I owe?

Discussion in 'Business Operations' started by Guardian, Mar 18, 2002.

  1. Guardian

    Guardian LawnSite Senior Member
    from Florida
    Posts: 269

    Lets say last year I grossed $75,000 with a net of about $40,000. And last year we were still sole prop. We paid estimated thru the year. Married/4

    What would you expect to owe? (ballpark)
     
  2. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Ballpark -- Wrigley Field


    I would say you better get a CPA involved. With deductions, mileage, insurance, cost of biz, wife, kids, etc. there is no way to know this.
     
  3. jaybird24

    jaybird24 LawnSite Senior Member
    from midwest
    Posts: 623

    Yeah definitely get an accountant. I run quik books pro and that pretty much breaks it all down for me, but with all the laws and such I never have a clue what I owe. Usually they can even help you save more than what they charge anyway.
     
  4. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Impossible to have a clue. Have to know personal deductions, other income, etc. Get to your tax preparer.

    You can probably count on at least 15% income tax, 15.3% self employment tax, plus whatever your state tax rate is if this is all you have.
     
  5. RYAN

    RYAN LawnSite Member
    Posts: 211

    I think I may be in somekind of the same ballpark. I paid $10,000 federal. I do not have any kids though, And my wifes income may of may not have had an impact. I would use my numbers give or take a couple grand.
     
  6. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    Taxes are simple. (You just need to abide by the 3,741 laws)


    Take what you earned.
    Subtract your deductions.
    Pay tax on the rest.

    And hire a CPA to walk you thru the process.
     
  7. Guardian

    Guardian LawnSite Senior Member
    from Florida
    Posts: 269

    I have an accountant. I use quickbooks PRO.

    I just found out from my acct how much I owe. I thought I may owe $2000-2500. Based on last years numbers. He says I owe $6200 this year. Seems a little high

    I think its that damn 15.9% self Empl tax

    $6200 hurts
     
  8. KDJ

    KDJ LawnSite Senior Member
    Posts: 325


    You should be glad we don't have state tax. ( yet )
     
  9. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    One of the advantages of being incorporated is that you can take half your net in salary (and pay the 15.3%) and the other half in dividends (and pay only income tax on that portion.)
     
  10. sheppard

    sheppard LawnSite Senior Member
    Posts: 542

    I say again! Incorporate!

    Specifically S Corporation. Always makes better sense to do this financailly than going S.P.

    Still will need a CPA however. They should save you a bundle.

    Cordially,
    Sheppard
     

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