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Fred Camino

Estimated Taxes

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As a self-employed individual I am apparently required to pay "Estimated Taxes" to the IRS on a quarterly basis. Since this is the first year I've been "self-employed" (not having taxes withheld from my income) I am quite confused as to how to best calculate the required estimated tax for the first quarter (and all remaining quarters). It seems quite difficult (if not impossible) to accurately guess exactly how much money I will earn (and take into account all the proper deductions and what not) this year when I am not receiving a steady paycheck where taxes are automatically withheld. I'm sure it's best to get an accountant for such things, but I enjoy attempting to figure this stuff out on my own, but I'm a bit stumped.

 

Any other freelancers with more experience have any advice for me?

 

Thank$.

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Fred, I just got back from my accountant's now and saw your post. Here is a link which you may have already come across.

http://www.ehow.com/how_9555_make-estimated-tax.html

 

Everyone's financial situation is different but I pay her to SAVE me money and find creative ways to do that and that makes up for the $500-$1000 I often have to pay her. Maybe you can save yourself money too but I hate the idea of getting audited just because I might have left something out or included something that I shouldn't have. Since this is your first year on your own then I don't know how you would figure up an estimation. If I were you I would hire an accountant and have them train you the first time then next year/quarter you will know how to do it yourself. I have all sorts of different shit going on so I just leave it up to the CPA and it gives me great peace of mind.

 

Good luck and don't worry.

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For the last 3 years I have just waited till the end of the year to pay. The IRS makes you pay a fine of $100-$200 range but it's been worth holding on to that tax money and avoiding the headache of estimated taxes. At the beginning of this year I incorporated, became an LLC, and got my first accountant... and it looks like I'm be paying less taxes than ever before. It's sad, but that's just how it is (in America)... the people who know the tax laws are worth their weight. After TurboTaxing and all other kinds of nonsense I agree with eric that a qualified CPA is the only way to go.

 

-m

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the people who know the tax laws are worth their weight.

 

i used to be (and guess i still am) a registered tax preparer.

 

the easiest way i can describe the tax system is this: taxes are a rich mans game. rich men make the rules, and if you aren't playing with a rich mans hand you are going to lose.

 

sometimes it means spending more in order to get the same services as a rich man, but the gains you stand to make greatly outweigh any cost up front.

 

get a corporation. get a tax attorney.

 

(i don't bother with CPA's. they are in business by virtue of the permission of the IRS. a tqax attorney, by definition, is in business to fight the IRS on your behalf.)

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talk to an accountant.. youre going to miss out on certain special breaks for small business or indepedent contractor related items. estimated tax also can save you at the end of the year. i can hook you up with my accountant. she does free first consultations and a discount of $25 on your taxes as a newbie incase you wanna go that route. id rather not have to stress over this shit if i dont have to

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your pm isnt working

 

if anyone has a really good tax attorney in LA that is accepting new clients, could you PM me? I need to get some of my business in order.

 

thanks

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your pm isnt working

 

hmmm...

 

you can email me at: hello@andrewparris.com

 

thanks

 

edit> My PM should be working now.

 

thanks again

Edited by fishface

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I'm looking for the same but for Vegas area. Govinda?

My brother? He used to keep Steve Wynn's personal checkbook and tax accounts. But no, don't know anyone...

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