All my money | Imamother

amother

Turquoise

Thu, May 02 2024, 8:56 pm

amother OP wrote:

Dissappear during tax season! It's insane.

Any tips on how to avoid this in the future? Besides for earning less money

Earn more money Very Happy

amother

Bisque

Thu, May 02 2024, 8:57 pm

I don't get your statement. If you earn less, you get taxed less but it is still only a percentage of your income.
Are you not withholding the right amount so you owe a lot of taxes come April?

amother

Dill

Thu, May 02 2024, 9:38 pm

I found that I was owing money because about a third of my pay is 1099 .I now have my job take an extra $600 a month off foe taxes (I know it's a lot!!! We aren't even high income) and now I actually got a rebate about $2000! So yeah, if you find they aren't taking enough taxes off, you gotta read your w4 or speak to an accountant.

amother

Freesia

Thu, May 02 2024, 9:42 pm

Every time you get paid save 25% (or whatever your bracket is) for taxes.
This way there’s no surprises and you’re properly prepared.

amother

Viola

Thu, May 02 2024, 9:43 pm

It’s not taking off enough from 1099 that throws us off. We make the full cheshbon now. It’s hard month to month. Also the accountant is $$$$ plus it’s Pesach season. I feel poor even though on paper we make a lot.

amother

Geranium

Thu, May 02 2024, 9:47 pm

amother Viola wrote:

Yup the accountant gets all of our tax refund and more basically. I mean the amount we are charged is usually more than what our refund is. Sigh…

amother

Fri, May 03 2024, 12:50 am

We don't withhold much during the year because we own our business. At the end of the year all the money that stayed in the account goes towards our taxes.

We are doing quarterly going forward but the number each quarter is astronomical. I just wanna cry

amother

Petunia

Fri, May 03 2024, 12:58 am

amother OP wrote:

Accountant here.

1. Get a very good accountant who can help with tax planning, maximizing tax deductions and credits, etc. Not all accountants are created equal, and sometimes it's worth paying a good accountant more $ because you will end up paying the IRS a lot less $$.

2. Thank Hashem that your business is earning enough money that you owe astronomical amounts of taxes. I had a client who earned $5 million last year call me up screaming that he refused to pay the $500K tax that was due. That's 10 percent. Yes it's a big number but he earned way, way more than that. It was so unpleasant and off-putting.

amother

Fri, May 03 2024, 1:12 am

amother Lightgreen wrote:

You need to sit down with a good accountant and tax plan. If you own your business do you have an s corp? Employees?

We have an llc
We don't earn close to a million. The business nets at around 200-250k.

It's so so frustrating

amother

Sapphire

Fri, May 03 2024, 1:14 am

Then why are you paying so much? Also do you make sure to check off all the proper deductions? You should have some sort idea of a how much money to put away for taxes every month. It shouldn’t be a surprise and you shouldn’t be draining your only money. I’d get a new accountant who can guide you better.

amother

Fri, May 03 2024, 1:17 am

amother Sapphire wrote:

We did go through all of our deductions. We might be getting back up to 5k, but I think that'll go towards the next quarter.

Last year we paid half of what we paid this year. I'm not sure why

theoneandonly

Fri, May 03 2024, 8:51 am

amother Whitesmoke wrote:

If anyone can name an actual good accountant that helps with this, it would be very helpful...

Imamother is not the place to get accountant recommendations. You need someone with experience doing business returns, not some little guy preparing every Joe shmoe's tax return in his basement. It also depends on your industry, your location, etc. Speak to other business owner colleagues to see who they use, set up initial consultations with accountants, and go from there.

amother

Petunia

Fri, May 03 2024, 8:53 am

amother OP wrote:

We did go through all of our deductions. We might be getting back up to 5k, but I think that'll go towards the next quarter.

Last year we paid half of what we paid this year. I'm not sure why

Your accountant should be able to explain why. It might be due to more income and a higher tax rate, different types of income with different tax rates, fewer expenses/deductions, less depreciation expense this year because you took bonus depreciation last year, estimated tax penalties for not paying in quarterly, etc

amother

Sapphire

Fri, May 03 2024, 8:54 am

amother OP wrote:

We did go through all of our deductions. We might be getting back up to 5k, but I think that'll go towards the next quarter.

Last year we paid half of what we paid this year. I'm not sure why

Taxes were raised this year. We all had it go up. Last year I got a refund this year I had to pay more than what was withheld. Same income.

amother

Freesia

Fri, May 03 2024, 9:02 am

amother Whitesmoke wrote:

If anyone can name an actual good accountant that helps with this, it would be very helpful...

Elliot Pepper was recently interviewed on Kosher Money and made a fantastic impression. We are going to be using him going forward.

amother

Whitesmoke

Fri, May 03 2024, 9:12 am

I officially use a good accounting firm. But so far any changes were suggested by me first, and when I asked questions about it I would be better off doing this or that they told me it's up to me.