Taxes

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Ben89

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Mar 30, 2007
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After reading countless articles on google about income taxes, I am still pretty confused and don't what the hell I'm doing when it comes to taxes. Am I supposed to be paying taxes every 3 months? Do I save up a certain amount and pay before April 15? I know there is a 15.3% self employment tax for medicare and social security, 9% tax to the state of california for $42k+ and another shitload goes to federal (what's left for me?)

Any pointers or resources is much appreciated, because this will be the first year I'll end up paying taxes for.

It's probably best if I can get some help from you guys before actually consulting an accountant because he'll probably try to fuck me over being that I am young.
 


Get an accountant. If you're prepared and have all the numbers when you see him, he'll see you're being serious and well why the fuck would he fuck you over?
 
Yeah, quarterly estimated taxes get paid out April 15, June 15, September 15, and January 15th. If you have all your figures together an accountant will run you roughly $200 -300 to get you set up - and you can have him do your taxes in April for about the same amount. Rates vary of course but you have to remember that you're not requiring very much of his time. When he's doing your taxes if you have all your numbers together he can do your return in a half hour or so. So don't let him charge you a lot for his time.

Based on what you made this past year he'll give you a number to pay for your estimated taxes each quarter. If your income goes drastically up or down throughout the year give him a call because you might need to change your estimated payment amount (simply send in a different amount via check to the feds) so you don't end up having to pay out a shitload of money at the end of the year. It's always better to pay a little more in than paying less than what you'll owe - you can end up with a refund that way. Refunds usually arrive by June.

What you need to go over with him is all the stuff you can deduct as an expense as part of your business. It's quite a long list of things. Domain registration, hosting, newsletter service provider, all outsourcing you do, any money you pay out to JV's who help sell your stuff, software, magazines, ebooks, physical books, all tools and services you use to educate yourself about your business, seminars you attend (with travel and lodgings reimbursable to some extent, as well as cost of the seminar,) coaching or mentoring you receive, 100% of your health insurance costs if you pay for health insurance as an individual, a lot of your other medical stuff (chiropractor visits, doctor copays, prescriptions,) a percentage of your rent and utilities and phone costs if you work from home and have an office (can be a desk with a computer) in your home, and more.

So it's really a GOOD thing to shell out the money for an accountant because you'll be able to deduct a shitload of stuff from your earnings, which means you'll end up paying much less taxes than you think. Accountants won't try to screw you because of your age. The only thing they always try to do is to sell you on the idea of investing some of your money in a Roth IRA or other type of 401k plan - don't do it. The stock market is still going to shit and you'll just be throwing money away in this current market. Instead of wasting it by putting it away in an IRA or 401k, use the money to reinvest in your business.

Dan

PS Forgot to add - you can deduct any money you pay to your accountant as a business expense, so basically it doesn't end up costing you anything.
 
Ben89 said:
It's probably best if I can get some help from you guys before actually consulting an accountant because he'll probably try to fuck me over being that I am young.
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Hello friend,

Why accountant want do gay butt sex with you? Maybe go find account no homosexual or no use be priest of Catholic?

I just joke. I know what mean. Accountant no take money from you to pay tax with. They just tell how much pay and you pay. So no can scam you that way.

If accountant make you pay to much they no benefit. I no think government let accountant keep difference if you pay to much. As least no in India.

Good luck bro.
 
Deductions aren't the same thing as credits, man.

Just because it's a deduction doesn't mean it's free.

And I would disagree with the investment thingy. There are going to be some sweet, sweet deals out there as the market drops. People with cash on hand are going to clean house.

Reinvesting in the business is good, as long as you're really doing it with a strategy. Randomly buying shit "for the business" isn't really re-investing.

dangregory said:
What you need to go over with him is all the stuff you can deduct as an expense as part of your business. It's quite a long list of things. Domain registration, hosting, newsletter service provider, all outsourcing you do, any money you pay out to JV's who help sell your stuff, software, magazines, ebooks, physical books, all tools and services you use to educate yourself about your business, seminars you attend (with travel and lodgings reimbursable to some extent, as well as cost of the seminar,) coaching or mentoring you receive, 100% of your health insurance costs if you pay for health insurance as an individual, a lot of your other medical stuff (chiropractor visits, doctor copays, prescriptions,) a percentage of your rent and utilities and phone costs if you work from home and have an office (can be a desk with a computer) in your home, and more.

So it's really a GOOD thing to shell out the money for an accountant because you'll be able to deduct a shitload of stuff from your earnings, which means you'll end up paying much less taxes than you think. Accountants won't try to screw you because of your age. The only thing they always try to do is to sell you on the idea of investing some of your money in a Roth IRA or other type of 401k plan - don't do it. The stock market is still going to shit and you'll just be throwing money away in this current market. Instead of wasting it by putting it away in an IRA or 401k, use the money to reinvest in your business.

Dan

PS Forgot to add - you can deduct any money you pay to your accountant as a business expense, so basically it doesn't end up costing you anything.
Click to expand...
 
thanks for the replies guys, how can i find a good accountant that has experience with online earners?
 
Ok, just came back from an appointment with one accountant, going to see a few more later, can anyone in the los angeles area recommend an accountant that has experience with people making money online? It just makes things so much easier, because this guy seemed kind of lost.
 
sumitdhawan09 said:
Why accountant want do gay butt sex with you? Maybe go find account no homosexual or no use be priest of Catholic?

I just joke. I know what mean. Accountant no take money from you to pay tax with. They just tell how much pay and you pay. So no can scam you that way.
Click to expand...

This shit right here, nigga! This shit right here!!!!! Classic!
 
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