That makes more sense. My comments referred to this part of your statement: "Quarterly taxes are different — that money actually goes into your Social Security." If we're going to owe taxes on regular income, then we should be paying quarterly on that income, too.
On a more general note, especially for those new to self-employment, I'm no expert at all this (this is one of my least favorite tasks to deal with and I usually just hand over my data to my tax people), BUT... I've also always thought that in order for our businesses to not be considered a hobby, we have to make a profit (after expenses) after so many years in business and for a minimum number of years out of the total - which probably means some income tax owed. (Check with the IRS or your tax adviser for details.) If expenses surpass income for too long, the IRS can decline all claimed deductions (especially if a spouse or joint filer has employment income), leading to a big bill. Talk about a tax headache!
Maybe there are exemptions or credits that offset this up to a point, but I think it's a good idea to be safe rather than sorry. Like Kimmie, I'd rather over-pay and get a refund than risk penalties.
Just stuff to be aware of...
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| Messages in this Thread |
|  Taxes - feelings screwed this year - Jennifer Mumford on 2/20/21 9:42pm |
|  Re: Taxes - feelings screwed this year - Carolyn Bodley on 2/20/21 11:46pm |
|  No, in CA, we can charge per sig notarized, not per stamp. n/m - JanetK_CA on 2/20/21 11:53pm |
|  Re: No, in CA, we can charge per sig notarized, not per stamp. - Jennifer Mumford on 2/21/21 12:22am |
| Yes. You pay SE tax only on what remains after the notary -  MW/VA on 2/21/21 7:40am |
| Re: Schedule C - Carolyn Bodley on 2/21/21 8:23am |
| Re: Schedule C - Luckydog on 2/21/21 11:05am |
| Re: IRS.gov topic 36 Penalty for underpayment of estimated - Carolyn Bodley on 2/21/21 12:22pm |
|  Topic 306 - Linda_H/FL on 2/21/21 12:30pm |
|  Re: Topic 306 - Carolyn Bodley on 2/21/21 12:49pm |
|  Re: Topic 306 - Luckydog on 2/21/21 3:23pm |
|  Many businesses file quarterly returns along with - Linda_H/FL on 2/21/21 4:37pm |
| Re: CPA’s tax program and now TurboTax has always calculated - Carolyn Bodley on 2/21/21 12:52pm |
| The IRS can charge a penalty is you owe $1,000 or more. - MW/VA on 2/21/21 1:49pm |
| Re: Topic 306 - JanetK_CA on 2/21/21 4:46pm |
| Re: Definitely easier to make 4 smaller quarterly payments - Carolyn Bodley on 2/21/21 4:56pm |
| Re: Topic 306 - Jennifer Mumford on 2/21/21 5:04pm |
| Re: Topic 306 - KimmyMD on 2/22/21 8:44am |
| Re: Topic 306 - Luckydog on 2/22/21 8:47am |
|  Re: have never been incorporated; operate as IC dba - Carolyn Bodley on 2/22/21 9:31am |
|  Re: have never been incorporated; operate as IC dba - Luckydog on 2/22/21 12:48pm |
| That has nothing to do with it. - JanetK_CA on 2/22/21 3:29pm |
| Re: That has nothing to do with it. - Luckydog on 2/22/21 6:58pm |
| Re: That has nothing to do with it. - Carolyn Bodley on 2/22/21 9:14pm |
| Re: Taxes - feelings screwed this year - ananotary on 2/21/21 8:53am |
| Re: Taxes - feelings screwed this year - Cheryl Elliott on 2/21/21 10:49am |
| Re: Taxes - feelings screwed this year - Jennifer Mumford on 2/21/21 11:10am |
| Don't feel too bad. Last year was really busy & I'm owing - MW/VA on 2/21/21 1:47pm |
| Re: Don - Luckydog on 2/21/21 8:17pm |
| Re: You don’t pay your CPA quarterly - you mail $ yourself - Carolyn Bodley on 2/21/21 9:33pm |
| Re: You don’t pay your CPA quarterly - you mail $ yourself - KimmyMD on 2/22/21 8:47am |
| Re: Taxes Direct pay - Clem/CA on 2/21/21 12:06pm |
| Re: Taxes Direct pay - Jennifer Mumford on 2/21/21 5:06pm |
| Re: Financial planners, SEPs, IRAs - Carolyn Bodley on 2/21/21 10:03pm |
| This ^^^^^^^^^^^^^^^ n/m - ananotary on 2/21/21 10:40pm |
| Re: This ^^^^^^^^^^^^^^^ - Luckydog on 2/22/21 8:49am |
| Re: Financial planners, SEPs, IRAs - JanetK_CA on 2/21/21 11:32pm |
| Re: Financial planners, SEPs, IRAs - Carolyn Bodley on 2/22/21 7:05am |
| Re: 1040-ES - Carolyn Bodley on 2/22/21 8:05am |
 | Re: 1040-ES - JanetK_CA on 2/22/21 3:55pm |
| Re: must make profit 3 out of 5 years - Carolyn Bodley on 2/22/21 5:19pm |
| Re: must make profit 3 out of 5 years - VT_Syrup on 2/22/21 6:07pm |
| Re: must make profit 3 out of 5 years - Luckydog on 2/23/21 7:19am |
