Taxes 😢 if you’re self employed

amother

Wed, Sep 14 2022, 12:23 pm

If you have a business that you own or are self employed how do you keep track of what you’ll owe in taxes?
Income varies year to year.
Where do you keep that money until it’s time to write the check to IRS?

SYA

Wed, Sep 14 2022, 12:32 pm

Use a tax calculator and pre pay in middle of the year for half. Or open another account and deposit the funds there until you pay it.

amother

Wed, Sep 14 2022, 12:37 pm

SYA wrote:

Use a tax calculator and pre pay in middle of the year for half. Or open another account and deposit the funds there until you pay it.

Is there a tax calculator you recommend

amother

Springgreen

Wed, Sep 14 2022, 12:40 pm

We prepay quarterly based on previous years income. Bh business has been growing each year so we do have to pay in a chunk at the end but we plan for it properly with our accountant.

amother

Jade

Wed, Sep 14 2022, 1:03 pm

You should take a percentage off each deal or each months payments etc and put it aside.

The percentage would obviously be individual to your taxes but you can use your average tax rate a rule of thumb.