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End Of The Year Taxes And The IRS

Discussion in 'Business & Tax Advice' started by anabolicdragon, Apr 5, 2009.

  1. anabolicdragon

    anabolicdragon Junior Member

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    I have a question from experienced guys here. Next year when I go to file my state and federal taxes what % of my gross earnings should I be looking to put away just in case I have to pay?
    Also I am not a LLC so what can I write off? I dont want to have to owe anything.
    I try to stay with networks that dont require a W-9 but I am going to end o\up making allot of money this year if it keeps going at this pace with companies that do report.

    Suggestions or Tips?
     
  2. innocent

    innocent Junior Member

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    Depends on what tax bracket you are ultimately in. If you "don't want to have to owe anything" than unless you are making over $100K, then 25% or so for Federal tax is a good amount to put aside. Keep in mind though that if you are making decent money and don't have a "regular" job where taxes are being withheld, that you likely need to be paying quarterly taxes to the Feds. If you end up owing a ton of money next year, there will likely be a penalty on top of it since you didn't pay anything quarterly. Also, so much of this depends on the actual amount of money you will be making. How do you define "alott of money..." Are we talking $10,000 or $100,000 or more? The answer to this question will define how you handle the tax issue.
     
  3. samspam

    samspam Junior Member

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    I would definitely recommend that you find yourself a good CPA. They can work magic like no one else!
     
  4. madinaz

    madinaz BANNED BANNED Premium Member

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    I agree get a good CPA because I learned the hard way about 10 years ago that involves the IRS isn't for amateurs
     
  5. samspam

    samspam Junior Member

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    Lol...you are way into the marketing thing now man...heheh..

    CPA - Certified Public Accountant in this case... If you don't want to hire one, at least use services at f.ex. HR Block etc.
     
  6. anabolicdragon

    anabolicdragon Junior Member

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    OK I will use 25% as benchmark.
    As far as working I think I will be working a full-time job up until july. As far as allot of money Def wouldn't be over 100k by any means from this point forward. Not over 40k from this point forward. Hope that helps.
     
  7. innocent

    innocent Junior Member

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    It's good that you have a full time job. So for you, here is the key. Will you "pay in" more federal tax in 2009 than you paid in 2008? If you worked full time in 2008 than the answer would be "no." If this is true, you will really want to pay quarterly taxes for the second and third quarter of 2009. This will accomplish two things: 1) you won't have to pay next year which was your original concern and, 2) you won't face a penalty for underpayment.

    If you want to do this yourself (which is really not that difficult) then here is the "Bible":
    http://www.irs.gov/publications/p505/ch02.html

    This will get you through 2009. Then, in 2010, go ahead and pay the money for a CPA to actually file your return and get you the max deductions etc.

    Oh yeah, and since you won't have a real job after July, make sure you are keeping good records and receipts if possible on all of your outlays for your internet marketing business. The CPA will use everything you have to minimize your tax liability to the best of their ability.

    Good luck!!
     
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