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[Ray Aberle]

I did mine back in February. Sent everything off (did it old school paper forms! Woo hoo). They've received everything, processed... turns out I screwed up on math/didn't put something on a line that I could have, so they've corrected it and increased my refund 22%. Woo hoo!

Anyone else getting an unexpected bonus from the government?

After leaving Trader Joe's this past year (last January) 2015 will be my first full year of fully self employed, so next year's taxes will be interesting, not having any income tax withheld by someone else. Ugh!

-Ray

[Jamin Lynch]

New IRS tax form:

1. How much did you make in 2014?

2. Please submit that amount.

[Tom Roche]

I'm finally meeting with my tax guy next week after waiting over a month since I made the appointment.

Anyone else getting an unexpected bonus from the government?

A bonus?  No, but I am getting back some of my own money.  It's not enough, though.  I make a middle-class income (1/2 of which goes to the ex) and still pay an inordinate amount in federal taxes.  I suppose someone's got to pay for the refunds the IRS says they'll be giving to the "Americans-in-waiting."

[Darin Ulmer]

"After leaving Trader Joe's this past year (last January) 2015 will be my first full year of fully self employed, so next year's taxes will be interesting, not having any income tax withheld by someone else. Ugh!"

And the self-employment tax.  Both sides (employee/employer) of social security and medicare.  This can be painful if you are not prepared for it.

[John Roberts {JR}]

"After leaving Trader Joe's this past year (last January) 2015 will be my first full year of fully self employed, so next year's taxes will be interesting, not having any income tax withheld by someone else. Ugh!"

And the self-employment tax.  Both sides (employee/employer) of social security and medicare.  This can be painful if you are not prepared for it.

The irs likes their money paid before it is due... (by jan 15th IIRC). They expect you to pay estimated taxes quarterly.

JR

[Tim McCulloch]

The irs likes their money paid before it is due... (by jan 15th IIRC). They expect you to pay estimated taxes quarterly.

JR

Yep.  If you wait to file your 2014 return and find that you should have made an estimated tax payment in January you'll be paying interest and penalties (computed up to the date of filing) AND you'll be making the 2nd quarter estimated payment on April 15.  Have a deep pocket if this applies to you....

[Ray Aberle]

I am well-aware of things like the self-employment tax, as well as estimated quarterly payments. I am watching the numbers closely, to make sure that I do whatever I need to do as I go along. On the other hand, I'm not exactly paying myself much of anything, (and the business is an S-Corp) so as it stands now, my 2015 income is very minimal.

Something else to consider: as an (the sole) owner of an S-Corp, any income (actual or perceived) to me comes in on Page 1, Line 17 via Schedule E, and NOT via Line 12 (Business Income or Loss via Schedule C). I BELIEVE that the expectation is that actual income (wages) would be being paid to you by the corporation and taxed appropriately at that point.

(Caveat: I am not a lawyer, or an accountant. Or really anything else. Haha.)

Now this past year, because I had residual money from an IRA cash out after leaving TJ's, I didn't need any real income from the business. Since I had Sec.173 depreciable expenses, and I took the 1-time special 100% depreciation as opposed to carrying them over several years (I also have a long term capital (Hi, VerTec!) depreciation now being done as well)-- that reduced the income shown to me personally (although that was perceived and not real income). Furthermore, that special Sec.173 depreciation is limited by your actual net income. So, my net income was 100% wiped out by the Sec.173 depreciation, AND I have excess disallowed (because it exceeded the net income) credit that I get to carry forward to next year.

Woo hoo! lol.


… and I did all of this myself. By RTFD. And filed a paper return. Heehe.

-Ray

Edit: Sch. C is on Line 12, not Sch. E again.

[Scott Holtzman]

Yep.  If you wait to file your 2014 return and find that you should have made an estimated tax payment in January you'll be paying interest and penalties (computed up to the date of filing) AND you'll be making the 2nd quarter estimated payment on April 15.  Have a deep pocket if this applies to you....

Actually borrowing money from the IRS is pretty cheap, about 11% effective rate.

[John Roberts {JR}]

Actually borrowing money from the IRS is pretty cheap, about 11% effective rate.

Cheaper than whom? Guido? CC?

JR

[Tom Roche]

Cheaper than whom? Guido? CC?

JR

Perhaps cheaper than Guido and the payday loan stores, but 11% IMO is not a good rate.  But then I think borrowing money, especially from the IRS, isn't the smartest thing to do.

[ProSoundWeb Community]