Taxes for 2013

All I can say is WOW, fuck the IRS...

Even after all my deductions, I still owe them a good portion of $... I'm just going to pay it all off right now but I think quarterly payments is probably a better option for 2014 earnings, what do you guys think?

I owe the IRS more money than anyone ever should, and that is ALONG with quarterly payments. They take everything.

Quarterly payments allows you to take advantage of the time value of money...in other words, keeping that money in your pocket longer means that you can invest it to make more. Once it is out of your pocket, you lose that leverage. However, there is a 'peace of mind' factor that might lead you to just pay it now so you don't have to think about it ever 3mos. Still...rough. Did you deduct home office, people you contracted work to, utilities, internet fees, etc?

As long as you have a record, you can deduct pretty much every single thing you've spent money on that even remotely connects to using a computer or marketing. Advertising, web server, domains, office space, computer parts, computer, internet service, phone, computer chair, mouse, magazine subscriptions, website subscriptions (yes, even porn-related -- you had to do research for your business!), food (if you met with a client during), travel, every single piece of software you bought, paypal expenses, credit card expenses, ATM fees....

the list goes on, be creative. As long as it was necessary for your business to continue, it's a business expense. And of course, if you donated anything, that is tax deductible ... Ya know, like gave your friend money so they could eat (i.e. you bought them beers).

Wealthy Wisdom said:

All I can say is WOW, fuck the IRS...

Even after all my deductions, I still owe them a good portion of $... I'm just going to pay it all off right now but I think quarterly payments is probably a better option for 2014 earnings, what do you guys think?

Click to expand...

In the U.S. it is a "pay as you go" system. If you don't have an employer deducting taxes from your paycheck (i.e., you are self-employed) then you are required to make quarterly estimated tax payments during the year. If you don't, then you will likely owe penalties and interest when you file you tax return.

I know it sucks having a big tax bill but it is actually a good problem to have since it means you are making good money. Just looking at it from a "glass half full" perspective