How do I figure out taxes for small business?

Question

I started a business six months ago , although I only started getting paid the past two months. I need to know if there is software that lets me input the figures for my business and it works out how much I need to pay in taxes....I dont have an accountant right now hopefully down the road I will be able to afford one. I bought TurboTax Home and Business, but it asks for 2006 figures. My business started operating 2007....Help!

Answer 1

I have been a tax accountant for 27 years, specialzing in small businesses. Let me tell you that even we professionals can't get current-year tax software . . . or tax forms . . . or tax publications . . . . The IRS doesn't approve software packages for a given year until the year is near its end---sometimes not for months afterward! Neither does the IRS make available current-year tax forms, guides, and publications . . . . Why? Because you have morons like George Bush signing major tax laws in late-December, retroactive to the beginning of the tax year!

There are some short summaries of new tax law changes available for the current year---but be aware . . . they can change the whole game by year end and they still want their taxes, penalties and interest if we can't read their tiny minds!

Answer 2

You'll need the 2007 version of TurboTax to figure your 2007 taxes - the 2007 version isn't available yet, won't be until around the end of 2007. But if you put the numbers into the 2006 version, you'll get a pretty reasonable estimate, close enough for paying your quarterly estimated taxes.

Steve C. is blaming Bush for the late rules last year - Congress didn't pass them until December, so THEY are the ones to blame. The president can't sign something until AFTER congress passes it! So who's the moron?

Answer 3

Get a copy of Quickbooks or PeachTree. Worry about keeping track of your income and expenses. If it looks like you're making any money, get the Form 1040-ES package from the IRS website and start making estimated tax payments. If you use Quickbooks, you can port it directly to Tax Cut for filing your return. That's about the best automated way to handle it, but getting some advice from a CPA along the way is always in order, especially for a new business owner. Their expertise isn't just taxes, but business in general and a good CPA is worth every penny you pay them.