I was just wondering....how do you take taxes out of your own paycheck? Thinking of starting a business and I don't want to owe thousands of dollars at tax time. I live in NC if that makes a difference...
2007-09-20 12:29:38 · 3 answers · asked by tellico_rocks 3 in Business & Finance ➔ Taxes ➔ United States
You have to pay taxes quarterly. Basically, you look at the income you have each quarter (revenue minus expense) and look up how much tax is owed. Then, you submit a quarterly income tax payment form to the IRS with the check. At the end of the year, you finalize the taxes, and on your tax form record the amount of quarterly checks paid. At the end of the year you either have to pay them the difference, or they have to refund you if you've overpaid. The best way I've found to keep track of this is to purchase QuickBooks, keep records in that program, and then send your accountant your file at the end of each year. It's relatively painless.
2007-09-20 12:38:15 · answer #1 · answered by wwwwizard 1 · 2⤊ 0⤋
Listen to wwwwizard, not to the responder who said to put money into savings until tax time - if you do that you'll owe penalties for not filing through the year.
2007-09-20 13:20:05 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
A good rule of thumb is to take 30% of your income out and put it in a savings, that way you can get interest until tax time.
2007-09-20 12:57:32 · answer #3 · answered by Anonymous · 0⤊ 2⤋