I have my own business that will generate about 5,000 monthly in gross sales, how often do I have to file for taxes, im in NY State is it quarterly? What options do I have?
2007-05-21 10:32:44 · 4 answers · asked by Thomas J 1 in Business & Finance ➔ Taxes ➔ United States
I thought I would add based off my answers already received. Basically I will be working part time and my current employment will be my first contract. I am negotiating now. So I will get paid part time and the other part will be paid to my company, I will have expenses through the business as well. So after expenses that my business will pay will I only have to report on the actual income after expenses as well? Thanks
2007-05-21 11:14:55 · update #1
You make quarterly payments based upon estimated taxes to the IRS. These are due April 15, June 15, September 15 and January 15. You likely make estimated tax payments to New York State. Go on the State Tax website and you'll be able to find out.
2007-05-21 10:40:59 · answer #1 · answered by Flyboy 6 · 1⤊ 0⤋
It's called quarterly, but the quarters are 3, 2, 3, & 4 months long. the payments are due 4/15, 6/15, 9/15, and 1/15 of the following year.
Your options are to pay each quarter or pay the whole thing with the tax return. If you pay your entire tax bill on April 15th of the following year, you will have to pay an underpayment penalty. It's really interest and is calculated based on about 9% rate. The bad news is that interest and penalties paid on taxes are never deductible.
New York mostly conforms to the federal rules, so the NY payments are due at the same time.
You say your business is generating $5,000 a month in gross sales. The important figure is how much you net after expenses. For example if your $5,000 in sales took $4,000 in product and $500 of other expenses (such as rent, shipping, office supplies, etc.) then your true income is only $500 a month.
2007-05-21 17:41:46 · answer #2 · answered by garyg7 7 · 0⤊ 0⤋
a simple answer, if you are self employed you must file quarterly, if you don't then you may possibly pay a penalty, depends on gross and net for year and how good your CPA is . Source business owner . And believe me file on time to let you know where you are financially and sleep at night... best of luck
2007-05-21 17:47:43 · answer #3 · answered by jerry m 3 · 0⤊ 0⤋
Wait a minute. You have a consulting business and you DON'T KNOW!
God help your clients.
2007-05-21 17:45:02 · answer #4 · answered by TedEx 7 · 2⤊ 0⤋