I started a small business about 3 months ago, I sold a total of 22k. I have to pay my taxes this month? Help?

Question

About how much do I have to pay if I made 22K in sales?
Of course not all of it is mine I kept about 15K That was what I got to keep for me. All of what I sold was to people from other states because I have a website and all were from other states so I did not charge taxes. I live in California.
Please help I just want to get an idea of how much I will be paying. Thankssssssss

Answer 1

TurboTax software is pretty cheap and can give you the answers you need.

Answer 2

First of all, do you have a resale certificate? Basically, a sales tax number? You need one.

Also, you need to calculate you taxes each week. What were your sales, times the sales tax percentage in your town. Then deposit that amount every Friday in a Tax account. (my bank offers free checking so that is route I took. Plus it comes with checks and I just pay my taxes out of that account) This will save you a lot of head aches and heart ache at the end of every quarter.

Next, call your state sales tax office. These are nice people. They are not out to get you. I live in Texas and have even had a lien put on my checking account (before getting the tax account and making weekly deposits) and they were very, very nice and helpful. They have seen and heard it all.

Ask them about Internet sales and out of state sales and what the tax law requires for your situation. You have until the 20th for this quarter so do it today! Don't waste time. Find out how to do this. They will answer all your questions and possibly make suggestions. That is what they are there for. You, the tax payer.

Buy an easy bookkeeping program, like Quickbooks or Quicken and set up your accounts so that you run your reports easily and quickly.

Answer 3

If you took 15k for three months, that computes as an estimate of 60K per year.

Consider your deductions, all business expenses, any dependents, yourself as dependent, etc.

That gives you your adjusted gross income.

Calculate 1/4 of your yearly estimated tax and send that amount to IRS. If none, file the estimated return stating none due.
If your income changes in the next quarter, up or down, then recalculate the above and adjust the amount remitted for the next quarter etc.

Your final amount of tax will be adjusted on your return next April. Bear in mind that you will also pay a self employment tax, only with your final return. If you are short and owe tax at year's end, you should not be penalized as your business is new.
Thereafter in subsequent years you must have paid your estimates of 80-90% of the previous year's tax, unless your income declines.
Any state income tax is due also.
You may need an accountant if you don't know how to do all this. Their fee is also deductible.

Answer 4

good rule of thumb: take 30% of each sale and but it in a savings account. for tax purposes. its alot but at years end you wont be cought off guard with hi tax bills. it will earn interest during the year also. over the course of the next few years if everything gets better then you will start to get a nice egg to use for expansion, emergencies, or whatever you want. find a good accountant and then talk with a financial advisor. the accountant will tell you how much you will owe and the advisor can tell you how to invest the 30% to get the most out of it.