Taxes

Discussion in 'Business Operations' started by bp418, Jan 4, 2005.

  1. bp418

    bp418 LawnSite Member
    Posts: 33

    I started my business a few months ago, I'm a one man operation. I do residential properties as a part time business, on my three days off from my full time job. On the money I am paid by my customers monthly, should I be automatically deducting FWT & FICA or just wait until I do the tax return in April??? :help:
     
  2. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    This year you're probably ok to just wait until april. Next year, depending on your business income, you may need to file quarterly estimates. The IRS will assess a penalty for failure to pay in sufficent taxes ratably during the tax year to cover your yearly tax liability. You may need to discuss the situation with your accountant. Unless your income from you business is substancial, you can possibly increase your employee withholding to cover the tax.
     
  3. bp418

    bp418 LawnSite Member
    Posts: 33

    Ok, thanks for the info. No substantial income yet, I'm only making $400 a month.
     
  4. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    A safe-harbor rule is to make sure your current year withholdings and estimate are at least equal to your prior year total tax ( line 56 on the 1040, me thinks)
     

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