Thru my whole LLC process I have been coasting on everything making this work but taxes has been my worst nightmare. You have made it so simple to understand with this video. Thank you so much for the info
Thank you so much for breaking taxes down. This was so helpful. I was so overwhelmed by what to do and my friend sent me this video. I don't feel as stressed now.
Thanks a lot. I didn't realize that you had to pay quarterly taxes in the year that you started your business. I thought you could pay by April 15 the next year like W-2. When you mentioned it, I looked it up and realized I was about to screw myself over with stupid penalties.
I read tax forms for like twenty minutes and you summed up what I needed in one easy sentence. thank you for the charts as well. I screen grabbed those. very helpful.
this is wonderful. so this video has made me a subscriber to your channel. you made it super easy to understand so now im wondering what other videos you have made. thank you so much for this info. this has helped me to prepare for my quarterly estimated. you are an amazing teacher
Thanks for your help, Morgan. I have a couple of questions. Should I pay taxes on my 1099 for the last 3 years? If so, will I have to amend my taxes for those years? I would appreciate if anyone who is knowledgeable about it help me. Thanks 😊
So I resell on Poshmark and eBay. I pay a 1040 es quarterly and then used my 1099 at the end of the year, plus all my business expense’s deductibles. Would that work? I deduct my cost of goods and fees out of my sales but not my mileage and supplies until the end.
I'm a bit confused on the formula. So, as an example, let's say I'm going to make an estimated $20,000 by the end of the year which would put me in the 2nd tax bracket as provided in the video. Does that mean that I would owe $1025.50 + $1,167 (20,000 - 10,275 = 9,725 | 9,725 x 0.12 = $1,167) resulting in $2192.5 which divided by 4, would result in quarterly payments of $548.12?? Please help, I'm trying to make sure this is accurate
hi I love this. Always appreciate the videos ! Do we have to pay state taxes as well for quarterly? If so, is net income or do we subtract after the federal are paid? Thanks
Hi! Thanks for watching. Yes, you need to pay state quarterly. It's on the net income (don't subtract fed taxes, they aren't actually considered a business expense).
Hi Carrie! I'm glad you enjoyed this video and will let Morgan know you are also interested in one for self-employment taxes. Krista (FinePoints Admin)
Hi Morgan! Great video. Quick question that I'm hoping you'll be able to answer soon: I am an independent contractor moonlighting. Is tax bracket dependent what I make overall? Or just for this job? I assume it's overall, but double-checking. Also, would having an LLC have any effect on the bracket? i.e. if I accept income through LLC for the independent contracting gig, would there be the tax bracket for me and an individual, and a separate one for LLC funds? Hope all is well, this is so enlightening!
I am an LLC scorp single member owner and I am a bit confused about paying quarterlies from my business account or my personal account. I'm told that if I pay those from my business account then that counts as distributions so it makes it very easy)I think) for the distributions to be higher than the salary. On the other end if I simply raise my salary in order to save enough for quarterly taxes, then im paying taxes on money im taking out to pay taxes. You know what im saying? So im curious to see your take/suggestion about this. Right now i have two business accounts, one for operating the business and one for saving for taxes but now im not sure if this is the right approach. Thanks for your video!
Yes, I get what you mean! My tax accountant helps me figure out the best salary (for my Scorp)... there is definitely a balance. I've heard that you want to keep your salary low-ish, but "reasonable" for your job.
I would have to pay taxes quarter if I made $10,000 because of self employment tax, this would cause me to owe over $1,500 roughly in taxes. But if I made $6,000, then I would be just shy of $1,000 in self employment tax. And I don't have to worry about federal because of my standard deduction, so that comes out to $0. Unless I made $10,000 then minus $4,000 in business expenses. I hope this makes sense XD. I have a spreadsheet my friend and I made for this but I didn't know I had to pay quarterly until just a few hours ago and I was worried that I was gonna be in hot water. But I'm fine.
Excellent video! You go along at a nice mellow pace If you owe zero taxes for the quarter you can’t send zero money so is there a form that you have to send to the IRS ( online) indicating you owe no taxes? Thx
Hey! There is no form, as Morgan mentions in the video, if you don't make enough to pay quarterly taxes, you simply don't pay. Krista (FinePoints Admin)
If you owe zero for an individual quarter, then you don't have to send in a form or a payment during that period; however, when you go that route, you are supposed to send Form 2210 and Schedule AI with your tax return so that the IRS won't assume you underpaid for the period (See the note on page 25 of IRS Pub 505: "If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your [this year] tax return"). I got hit with this requirement one time when an invoice payment was bundled, resulting in an income spike in the last quarter of the year. When figuring your estimated payments, if you choose to make four equal payments for the whole year (regular installment method), then you use Worksheet 2-1. If you choose to pay more or less each period based on your actual income (annualized installment method), then you use Worksheet 2-7. www.irs.gov/pub/irs-pdf/p505.pdf
I am an independent contractor but make less than 10k annually,so I have been paying my taxes on that income annually so I don’t have to pay quarterly right? 😩 could you link where I can find that info on the IRS website?
Thank you so much for all the helpful info, but I still have a few questions, I'm just starting my business, if I don't think I'm going to reach that $1,000 in taxes but my shop suddenly takes off do I start making payments in the next quarter, and then make up the rest at the end of the year? Also, when do I fill out schedule c? If I'm making quarterly payments do I turn it in when I first start making them, or before each new payment to reflect profit or loss for each quarter? I've been trying to google it but came up empty. Thanks for any help you can give
Schedule C is done annually with your tax return. No need to make estimated tax payments if you believe you will owe less than $1000. If it becomes evident you will owe more than $1000, make an estimated tax payment at the next quarterly due date.
I can not seem to hear what I am looking for. I too am a bookkeeper, it's been a while. To find out how much is owed for taxes (Fica,Medicare, etc) , you take gross amount and "*" it by what the irs/state percentage is? I am correct. Thank you for your help.
I'm not sure how to answer to your question, I'm sorry! Medicare, etc. would be a payroll issue. For quarterly taxes, you take a percentage of the net.
Thank you so much for the video how does the irs know about the expenses youve made for your business are bank statements or cc statements required and what about if you used cash for a business expense ?
Hi Ben! Yes, will want to keep your business bank and credit card statements. When you make expenses with cash, you will want to keep your receipts as well. Krista (FinePoints Admin)
I just started my business this year in may. (LLC, sole proprietorship) I did make some money, but have enough deductions to take it to Zero for the year. Am I going to owe anything? Should I have paid quarterly?
Hey! Morgan isn't a CPA so she isn't able to direct you on how to do your taxes. Morgan recommends reaching out to a local CPA or tax preparer that can help answer you question. Krista (FinePoints Admin)
I make less then 200 for that year but was not qualified to do tax’s because I didn’t meet the 600 in gross sales threshold so I would put 0 for my quarterly tax returns?
Great video. Does this also account for if you’re just getting a 1099 as an individual rather than a small business as a corporation? And should self-employed tax be added to this calculation for quarterlies?
I work a 9-5 and I also have a small buisness/side hustle? For the year I made more than $10k . for the side hustle made under 10k. This year I am projected to make about the same. Do I pay estimated taxes or no? Also for 2023 I filed my personal taxes and business taxes together through TurboTax if I owed the state and federal government taxes that amount to over 1000.00 should I have been paying estimated tax payments?
My business just started this last week, and it is a seasonal business as a food cart concession trailer, i have spent close to 12,000 to 14,000 to get started. sales is slow but hopefully building up the business as i go, how is the tax figured when i spent that much and with sales and merchandise i have paid still goes to waste, after 2-4 days depending on the items if course, how does all this fit in as a loss of the business and the claim of the amount spent to get started ? please let me know on if i need to categorize / itemize what i purchase from the store or do i just state this is what i spent, and deduct it as i go weekly..My business will be open from April to Oct maybe Nov depending on the weather of course...so right now it won't be a full year business, so is it best to pay quarterly or the best choice and idea. I know my profit will be 0 amount for a year or so until payments are paid off and/or i hit the lotto which ever comes first lol
Thank you for this video! Question tho. If I’m married filing jointly do I have to take into account her income and her quarterly income? This is my first year for the business and I’m not sure how to take that into consideration. Thanks in advance.
Thank you for sharing this video about Quarterly Taxes. As you know, I have a home based business in Bookkeeping and Accounting, and I am self-employed. What you have discussed in the video, does this apply to me also? To be honest with you, I know more about bookkeeping and accounting than I do about income tax preparation. Are there any suggestions you could give me about this, so I can understand it better? Please let me know more about this. I look forward to your response, so I can do well with this in my business. Thank you.
Hi Rickey! Yes, this can apply to you too. Morgan follows this process with her own taxes. Here are 2 other videos that Morgan where she talks about how to do your taxes as a bookkeeper: th-cam.com/video/SRnWBWOvtHY/w-d-xo.html, th-cam.com/video/pgIvbGI0ugc/w-d-xo.html Hope this helps! Krista (FinePoints Admin)
I've searched TH-cam and no video ever addresses this one question. Do consulting businesses (No physical Product), need to file quarterly FL state sales taxes? Must we file, and list as zero taxes collected? or do we not, have to file because it's obvious...
this year is my first year doing 1099 nec. i dont make much per year, but it appears that the self employment tax jacks up the tax extremely high- is this normal? I did a tax calculator to see how much i would owe ( im assuming its a very broad estimate) and it was like $8000 even though i only made 36000 on a 1099nec- that seems just, wrong. I really hope it is.
We have trucking business. I need to know what type of courses i need to take to do IFTA ,KYU,IRP and taxes , also other taxes and dot requirements . Im in the state of Georgia. Will H&R block be a good place to get some training?
Hi Pantera! Morgan does not work with taxes, she does however think that H&R Block will have answers and training for you in this area. Krista (FinePoints Admin)
Great video! What if I paid estimated taxes and I wasn’t supposed to?? Meaning, turbo tax had coupons laid out in my tax return with specific payments I was supposed to make according the schedule. I am not a business owner but just an hourly tax payer, will those taxes be refunded at the end of the year or will it offset what I may owe next year?? And I will be owing over. 1k , thanks much!!
If I make an estimated quarterly tax payment on the IRS website using the 'Direct Pay' method, how will they know about my expenses and Schedule C? Are those forms only needed at the end of the year?
Great info. I have a small side business LLC for 2 years. I have someone that does my taxes but I'm not sure what to look for on my tax for that would relate to my business. I'm a little afraid to look lol😂 I haven't made a lot of money, first year my expenses were more. I've never done quarterly taxes, do not sure if I'm good for now. What should I look for on my tax forms? Thanks for sharing!
What if I have online selling as side income and I use online platforms like poshmark. Base on the receipts the amount i receive per item sold shows it’s already taxed. Do I need to pay quarterly? And is there also a threshold to start paying quarterly on selling in online platforms? Thanks for the video it’s very informative.
I have a full-time job that takes taxes, insurance, HSA and 401K out. I just took on a side hustle that is 1099. I need to figure out how to pay quarterly taxes with 2 jobs.
Thank you for the video. I set up my irs account to pay quarterly taxes. This seems to be for my personal taxes. How do I set up for my LLC quarterly taxes
what do i do if I work a full time W2 job and also have a single member LLC, do i pay quarterly taxes as well as personal taxes at the April tax season, or do I do both the LLC and my personal taxes all together in April?
I’m the same way, I work a 9 to 5 and have a single member LLC. I suggest that you get “Quickbooks Self Employed” they can help you bookkeep your profits and losses, deductions and etc. I added my W2 income with my business Income as well so Quickbooks will automatically make your estimate quarterly taxes ONLY with your business income. Your W2 employer will automatically pay those taxes for you as an employee. You just only pay the Business Tax in April.
None of my income has taxes taken out. I am voluntarily having taxes taken from my Social Security. If I cancel that can I pay quarterly directly to the IRS and can they be paid online. If so plesse give me the website please.
Lots of good info thanks! Questions for those here who may know. 1. I’m a regular W-2 wage earner with a small sole proprietorship side hustle. Round numbers W-2 is $80K per year and side hustle profit is $10K per year. Am I correct in understanding that I should be paying quarterly taxes on that $10K and that I should be calculating that tax based on the $90K tax bracket? 2. This will be my first year to do this. I’ve always previously only had w-2 income. Do I need to somehow notify the IRS of that I’m going to be sending $ in quarterly? 3. it’s May and I am just now starting up this side business (it’s seasonal). I haven’t made any quarterly payment so far or taken any action on this whatsoever. Anything special I need to do or know about that? Thanks!
@@astoldbymuriel103 I have seen posted/written multiple places that it’s probably fine for the 1st year just to wait and do it with your regular taxes. Unless of course you’re talking about way more profit for a side business than what I’ve got going on. If there is a penalty for not paying quarterly it will be tiny. I’ve also heard they that IRS will usually send a letter after the first year saying you need to pay quarterly if you do. Again tho, if anyone here has better info please chime in and help us both out.
1. Yes, that's correct 2. You can just go to the IRS website and make an account and may payments there. If you aren't paying online the form to include is a 1040-ES (my tax professional has made these for me before I started paying online). 3. Don't over-stress about being perfect, but try to get your tax payments close to the total owed by the end of the year (you can add more to Q3 or Q4 payments if needed).
I’m kinda new to estimated taxes. I’m a LLC with a worker. When calculating my estimated taxes does it ever ask to add my employee wage tax amounts? Or this doesn’t mess with my employee wage tax until form 941 and w-3?
Because I have a software filing my estimated taxes and it’s asking for “taxpayer’s wages subject to social security/Medicare” does this mean me or how much I pay in employee wages. So I don’t pay myself with checks as I’m considered sole proprietor. Would this be 0 or be my employee wage tax amount?
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
I think that means YOUR wages (so, zero). Side note, your employee's wages will be an expense to your business (so will reduce your total income), but that particular part you quoted is your wages.
Hello I just paid my first quarterly tax for April 15. Will they automatically take out my account for June 15 or will I have to do the same steps over to initiate payment for June 15
So are you making one payment every 3 months or is it two payments every 3 months? Are state and federal taxes paid separately when you are dealing with quarterly taxes.
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
If this year we are not going to make any money, do we need to go and file any forms with IRS on quarterly basis. We own a e-commerce business. Also , if we are a two member LLC and this is our side hustle, do we need to do anything about self employme?nt taxes like Medicare and social security
Because we're not lawyers, we can't give legal advice, but we'd recommend talking to your accountant about these questions, as they are particular to the type of business you are registered for, the state you live in, how much you make, and so on. ~Gabe, FP admin
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
hmmm, this is interesting as I do not pay my taxes quarterly except for payroll taxes. We are over the 10K threshold. I pay at the end of the year with passthrough and we are an s-corp. This is the way my CPA does it. Just wondering
Hi Kim, There are certainly different ways to do it and if that is how your CPA recommends doing them that's fine if it works for you also. Krista (FinePoints Admin)
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
Do we receive any form from the IRS showing our 1040-ES Payments? For example, if I am making taxes via TurboTax, how do I tell them I already pre-paid some taxes?
Hey Daniel! Morgan recommends reaching out to a local tax professional. Morgan is not a CPA or tax preparer so she can not give legal advice. Krista (FinePoints Admin)
What about seasonal work like lawn care? Do we pay only the quarterly we work? Or divide the whole year by 4? I only have one customer for my first year and don’t want to go to jail. 😂😂 I may just not pay this year and pay penalties because i have no idea if i will get customers. Or should i pay nothing first quarter. Then if i get customers calculate and pay second quarter to make up for the last. And so on as the year progresses?
Hey! Morgan is not able to give legal advice since she is not a CPA or tax preparer. Morgan recommends reaching out to a tax professional in order to find out what you should do. Krista (FinePoints Admin)
This is covered in IRS Publication 505. If you estimate the whole year (or use last year's tax bill as the basis of your estimate) and make four equal payments, follow the instructions for the Regular Installment Method. If you pay as-you-go based on each quarter's income, follow the instructions for the Annualized Installment Method and remember to include Form 2210 with your tax return. www.irs.gov/pub/irs-pdf/p505.pdf
Good morning Morgan, I pray this email finds you well. I am reaching out to connect with other niche based accountant/bookkeepers specializing law firm trust accounts. As an MBA accountant and fiancé of an Attorney, this seemed to be a great niche. I was listening to one of your great videos and ran across the one were you mentioned moving towards this niche market. I am so excited for you. I have began accepting clients. It has been very slow - because I have been stuck on how to approach the firms. I started working on a marketing campaign to send emails...then mail a card...then a phone call. I am in California - I noticed you are in Oregon. I guess I mostly want to ask...how has your experience been so far? I know you are busy, but I am getting out of my comfort zone and reaching out. Thank you in advance for your response.
Hi Phyllis! Morgan is actually feeling pretty new/inexperienced about the attorney side of bookkeeping, as well. Some things Morgan has realized helps her is having specific knowledge on trust accounts, client cost advances, attorney KPIs and hooking Clio up to QuickBooks. The more specialized knowledge you have, the better you can market yourself to potential clients (and the better you can serve them). Morgan recommends joining this FB group: facebook.com/groups/accountantslawlab. Morgan is a part of Lynda's paid group and they do calls every Friday (She has found this somewhat helpful, but not exactly a step-by-step guide). Morgan agrees that there's not a great place to learn attorney bookkeeping from square one... this may be something she looks at creating in the future! Krista (FinePoints Admin)
I have a question I been in my business about 7months but I haven't started my business yet haven't made no revenue because I work a full time job somewhere else do I still have to paid Quarterly
Hey! Morgan recommends reaching out to a local tax professional to find out. She is not a CPA or tax preparer so she can not give legal advice, she can only share about her experience. Krista (FinePoints)
Hey Janey! Morgan is not a CPA or tax preparer and can only speak on her experience with quarterly taxes. She recommends you ask your local accountant what is best for your business. Krista (FinePoints Admin)
Hey! Morgan does not have a video on sales tax. The state she live in actually doesn't have sales tax, so she hasn't had much experience with it. But I will let her know it's something you're interested in learning more about. Krista (FinePoints Admin)
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Thank you for this video, I never comment on stuff online, but I can't thank you enough for the information you shared here.
Thru my whole LLC process I have been coasting on everything making this work but taxes has been my worst nightmare. You have made it so simple to understand with this video. Thank you so much for the info
Thank you SO MUCH! This has been the most helpful and straightforward video I’ve come across. So many videos are SO overwhelming. Thank you!!!!
Love your videos, straight to the point, no nonsense, no dragging! 🥰
Thank you so much for breaking taxes down. This was so helpful. I was so overwhelmed by what to do and my friend sent me this video. I don't feel as stressed now.
Hi Amy! We are so glad this video helped explain quarterly taxes in a simple and understandable way!
Krista (FinePoints Admin)
Thank you so much for this, you explained this so clearly! You're the best!
Thanks a lot. I didn't realize that you had to pay quarterly taxes in the year that you started your business. I thought you could pay by April 15 the next year like W-2. When you mentioned it, I looked it up and realized I was about to screw myself over with stupid penalties.
Thanks for the note about coding taxes as 'equity' instead of 'expense'. I didnt know that until watching this
I love your enthusiasm! Thank you for your help!!!
This was just what I needed! Thank you!!!
Tjis is the beat advice I gotten all year about taxes.
I read tax forms for like twenty minutes and you summed up what I needed in one easy sentence. thank you for the charts as well. I screen grabbed those. very helpful.
Glad it was helpful!
Krista (FinePoints Admin)
Great video, answered all my questions, thanks!
this is wonderful. so this video has made me a subscriber to your channel. you made it super easy to understand so now im wondering what other videos you have made. thank you so much for this info. this has helped me to prepare for my quarterly estimated. you are an amazing teacher
We are glad you enjoyed this video and thank you for following FinePoints!
Krista (FinePoints Admin)
This was a great video! I learned alot simple and easy! God bless you!🙏🏾
I'm glad it was helpful!
Krista (FinePoints Admin)
This was great. Thank you!
Thank you so much. This was the easiest video to understand
We are so glad you found it helpful!
Krista (FinePoints Admin)
Great video. Thanks!
Thank you, this was helpful!
Glad it was helpful!
def appreciate this video, described it perfectly !. thank you !.
Glad it helped!
Krista (FinePoints Admin)
Thank you, very helpful info
Very helpful, thank you.
So helpful and clear. Thanks!
Glad it was helpful!
Krista (FinePoints Admin)
Thank you lovely human!❤️
Nice job thanks!
Hey! What happens if you miss the April and June estimated taxes? I am planning on pay for September and January..
Thanks for your help, Morgan. I have a couple of questions.
Should I pay taxes on my 1099 for the last 3 years?
If so, will I have to amend my taxes for those years?
I would appreciate if anyone who is knowledgeable about it help me.
Thanks 😊
Great job 😊
So I resell on Poshmark and eBay. I pay a 1040 es quarterly and then used my 1099 at the end of the year, plus all my business expense’s deductibles. Would that work? I deduct my cost of goods and fees out of my sales but not my mileage and supplies until the end.
I'm a bit confused on the formula. So, as an example, let's say I'm going to make an estimated $20,000 by the end of the year which would put me in the 2nd tax bracket as provided in the video. Does that mean that I would owe $1025.50 + $1,167 (20,000 - 10,275 = 9,725 | 9,725 x 0.12 = $1,167) resulting in $2192.5 which divided by 4, would result in quarterly payments of $548.12?? Please help, I'm trying to make sure this is accurate
Amazing video 🎯
Thanks for watching!
Krista (FinePoints Admin)
hi I love this. Always appreciate the videos !
Do we have to pay state taxes as well for quarterly? If so, is net income or do we subtract after the federal are paid?
Thanks
Hi! Thanks for watching. Yes, you need to pay state quarterly. It's on the net income (don't subtract fed taxes, they aren't actually considered a business expense).
This is JUST the video I needed!
Can you please do something similar for self-employment taxes? How are they different?
Hi Carrie! I'm glad you enjoyed this video and will let Morgan know you are also interested in one for self-employment taxes.
Krista (FinePoints Admin)
Hi Morgan! Great video. Quick question that I'm hoping you'll be able to answer soon: I am an independent contractor moonlighting. Is tax bracket dependent what I make overall? Or just for this job? I assume it's overall, but double-checking.
Also, would having an LLC have any effect on the bracket? i.e. if I accept income through LLC for the independent contracting gig, would there be the tax bracket for me and an individual, and a separate one for LLC funds?
Hope all is well, this is so enlightening!
THANK YOU!!!
You're welcome!
Does this apply even if you aren’t a business owner?
Thank you
great advice, but if I owe less than $1,000 in taxes, do I still need to make out the paperwork/fill in the blanks on the IRS website?
if you just created the business this year... can you just pay the taxes on the normal tax day? (end of the year tax season)
What about the self employment tax?
Thanks this was very helpful! Question re: categorizing tax payments as equity. Does this apply only to LLC's or sole props as well?
Hey! Morgan isn't a tax preparer and personally only has an LLC. She recommends you ask a local tax preparer or accountant.
Krista (FinePoints Admin)
I am an LLC scorp single member owner and I am a bit confused about paying quarterlies from my business account or my personal account.
I'm told that if I pay those from my business account then that counts as distributions so it makes it very easy)I think) for the distributions to be higher than the salary.
On the other end if I simply raise my salary in order to save enough for quarterly taxes, then im paying taxes on money im taking out to pay taxes. You know what im saying?
So im curious to see your take/suggestion about this.
Right now i have two business accounts, one for operating the business and one for saving for taxes but now im not sure if this is the right approach.
Thanks for your video!
Yes, I get what you mean! My tax accountant helps me figure out the best salary (for my Scorp)... there is definitely a balance. I've heard that you want to keep your salary low-ish, but "reasonable" for your job.
I would have to pay taxes quarter if I made $10,000 because of self employment tax, this would cause me to owe over $1,500 roughly in taxes.
But if I made $6,000, then I would be just shy of $1,000 in self employment tax. And I don't have to worry about federal because of my standard deduction, so that comes out to $0.
Unless I made $10,000 then minus $4,000 in business expenses.
I hope this makes sense XD. I have a spreadsheet my friend and I made for this but I didn't know I had to pay quarterly until just a few hours ago and I was worried that I was gonna be in hot water. But I'm fine.
Excellent video! You go along at a nice mellow pace
If you owe zero taxes for the quarter you can’t send zero money so is there a form that you have to send to the IRS ( online) indicating you owe no taxes? Thx
Hey! There is no form, as Morgan mentions in the video, if you don't make enough to pay quarterly taxes, you simply don't pay.
Krista (FinePoints Admin)
If you owe zero for an individual quarter, then you don't have to send in a form or a payment during that period; however, when you go that route, you are supposed to send Form 2210 and Schedule AI with your tax return so that the IRS won't assume you underpaid for the period (See the note on page 25 of IRS Pub 505: "If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your [this year] tax return"). I got hit with this requirement one time when an invoice payment was bundled, resulting in an income spike in the last quarter of the year.
When figuring your estimated payments, if you choose to make four equal payments for the whole year (regular installment method), then you use Worksheet 2-1. If you choose to pay more or less each period based on your actual income (annualized installment method), then you use Worksheet 2-7.
www.irs.gov/pub/irs-pdf/p505.pdf
I am an independent contractor but make less than 10k annually,so I have been paying my taxes on that income annually so I don’t have to pay quarterly right? 😩 could you link where I can find that info on the IRS website?
so if i do 1099 gig work on the side, and make up to the 15% tax bracket with a w2 job, would i need to file quarterly for the 1099 work?
Thank you so much for all the helpful info, but I still have a few questions, I'm just starting my business, if I don't think I'm going to reach that $1,000 in taxes but my shop suddenly takes off do I start making payments in the next quarter, and then make up the rest at the end of the year? Also, when do I fill out schedule c? If I'm making quarterly payments do I turn it in when I first start making them, or before each new payment to reflect profit or loss for each quarter? I've been trying to google it but came up empty. Thanks for any help you can give
Schedule C is done annually with your tax return. No need to make estimated tax payments if you believe you will owe less than $1000. If it becomes evident you will owe more than $1000, make an estimated tax payment at the next quarterly due date.
I can not seem to hear what I am looking for. I too am a bookkeeper, it's been a while. To find out how much is owed for taxes (Fica,Medicare, etc) , you take gross amount and "*" it by what the irs/state percentage is? I am correct. Thank you for your help.
I'm not sure how to answer to your question, I'm sorry! Medicare, etc. would be a payroll issue. For quarterly taxes, you take a percentage of the net.
Thank you so much for the video how does the irs know about the expenses youve made for your business are bank statements or cc statements required and what about if you used cash for a business expense ?
Hi Ben! Yes, will want to keep your business bank and credit card statements. When you make expenses with cash, you will want to keep your receipts as well.
Krista (FinePoints Admin)
Thank you so much
Hello. I opened and LLC this year 2023 and I am not starting to operate, should I have to file something for the IRS declaring that I owe cero?
I just started my business this year in may. (LLC, sole proprietorship) I did make some money, but have enough deductions to take it to Zero for the year. Am I going to owe anything? Should I have paid quarterly?
Hey! Morgan isn't a CPA so she isn't able to direct you on how to do your taxes. Morgan recommends reaching out to a local CPA or tax preparer that can help answer you question.
Krista (FinePoints Admin)
What about FICA tax? Do we include that in the quarterlies?
I make less then 200 for that year but was not qualified to do tax’s because I didn’t meet the 600 in gross sales threshold so I would put 0 for my quarterly tax returns?
I got 1099 Nec. This year instead of W2.
Great video. Does this also account for if you’re just getting a 1099 as an individual rather than a small business as a corporation?
And should self-employed tax be added to this calculation for quarterlies?
Yes, self-employment tax goes on line 9 of the estimated tax worksheet:
www.irs.gov/pub/irs-pdf/f1040es.pdf
I work a 9-5 and I also have a small buisness/side hustle? For the year I made more than $10k . for the side hustle made under 10k. This year I am projected to make about the same. Do I pay estimated taxes or no? Also for 2023 I filed my personal taxes and business taxes together through TurboTax if I owed the state and federal government taxes that amount to over 1000.00 should I have been paying estimated tax payments?
Not enough customers and I spent money on inventory that has not moved like I hoped it would.
What about self-employment tax? FICA (medicare/Social Security) - does that roll into what I estimate for federal? That's about 15.3%. :(
My business just started this last week, and it is a seasonal business as a food cart concession trailer, i have spent close to 12,000 to 14,000 to get started. sales is slow but hopefully building up the business as i go, how is the tax figured when i spent that much and with sales and merchandise i have paid still goes to waste, after 2-4 days depending on the items if course, how does all this fit in as a loss of the business and the claim of the amount spent to get started ? please let me know on if i need to categorize / itemize what i purchase from the store or do i just state this is what i spent, and deduct it as i go weekly..My business will be open from April to Oct maybe Nov depending on the weather of course...so right now it won't be a full year business, so is it best to pay quarterly or the best choice and idea. I know my profit will be 0 amount for a year or so until payments are paid off and/or i hit the lotto which ever comes first lol
Thank you for this video! Question tho. If I’m married filing jointly do I have to take into account her income and her quarterly income? This is my first year for the business and I’m not sure how to take that into consideration. Thanks in advance.
Yes, you do!
Thank you for sharing this video about Quarterly Taxes. As you know, I have a home based business in Bookkeeping and Accounting, and I am self-employed. What you have discussed in the video, does this apply to me also?
To be honest with you, I know more about bookkeeping and accounting than I do about income tax preparation. Are there any suggestions you could give me about this, so I can understand it better? Please let me know more about this. I look forward to your response, so I can do well with this in my business. Thank you.
Hi Rickey! Yes, this can apply to you too. Morgan follows this process with her own taxes. Here are 2 other videos that Morgan where she talks about how to do your taxes as a bookkeeper: th-cam.com/video/SRnWBWOvtHY/w-d-xo.html, th-cam.com/video/pgIvbGI0ugc/w-d-xo.html
Hope this helps!
Krista (FinePoints Admin)
@@FinePointsBookkeeping Thank you.
I've searched TH-cam and no video ever addresses this one question. Do consulting businesses (No physical Product), need to file quarterly FL state sales taxes? Must we file, and list as zero taxes collected? or do we not, have to file because it's obvious...
Hey Morgan as a bookkeeper do you give your clients advice about super or payroll or any tax advices? or direct them to accountant?
Morgan does not do payroll or taxes for her clients so she directs them to their CPA or tax preparer.
Krista (FinePoints Admin)
this year is my first year doing 1099 nec. i dont make much per year, but it appears that the self employment tax jacks up the tax extremely high- is this normal? I did a tax calculator to see how much i would owe ( im assuming its a very broad estimate) and it was like $8000 even though i only made 36000 on a 1099nec- that seems just, wrong. I really hope it is.
We have trucking business. I need to know what type of courses i need to take to do IFTA ,KYU,IRP and taxes , also other taxes and dot requirements . Im in the state of Georgia. Will H&R block be a good place to get some training?
Hi Pantera! Morgan does not work with taxes, she does however think that H&R Block will have answers and training for you in this area.
Krista (FinePoints Admin)
Great video! What if I paid estimated taxes and I wasn’t supposed to?? Meaning, turbo tax had coupons laid out in my tax return with specific payments I was supposed to make according the schedule. I am not a business owner but just an hourly tax payer, will those taxes be refunded at the end of the year or will it offset what I may owe next year?? And I will be owing over. 1k , thanks much!!
Yeah, I think you you should get a refund back if you overpaid
Can I pay ES taxes at any date during a quarter or do I have to pay on exact due date ?
If I make an estimated quarterly tax payment on the IRS website using the 'Direct Pay' method, how will they know about my expenses and Schedule C? Are those forms only needed at the end of the year?
Yes, only once a year when your taxes are filed
are ACA (obamacare) health care premiums counted as an expense?
I didn’t know about this. So the IRS sends out papers for this? I opened my business in March and I haven’t received nothing from the IRS…
im in md not sure what i have to pay state and federal? and is IC different tax %and only made 5000 this year so im lost
Great info. I have a small side business LLC for 2 years. I have someone that does my taxes but I'm not sure what to look for on my tax for that would relate to my business. I'm a little afraid to look lol😂 I haven't made a lot of money, first year my expenses were more. I've never done quarterly taxes, do not sure if I'm good for now. What should I look for on my tax forms? Thanks for sharing!
What if I have online selling as side income and I use online platforms like poshmark. Base on the receipts the amount i receive per item sold shows it’s already taxed. Do I need to pay quarterly? And is there also a threshold to start paying quarterly on selling in online platforms?
Thanks for the video it’s very informative.
My same question. Please tag me if you get an answer 🙏
I have a full-time job that takes taxes, insurance, HSA and 401K out. I just took on a side hustle that is 1099. I need to figure out how to pay quarterly taxes with 2 jobs.
Thank you for the video. I set up my irs account to pay quarterly taxes. This seems to be for my personal taxes. How do I set up for my LLC quarterly taxes
You can, but for legal reasons Morgan does not recommend it.
Krista (FinePoints Admin)
what do i do if I work a full time W2 job and also have a single member LLC, do i pay quarterly taxes as well as personal taxes at the April tax season, or do I do both the LLC and my personal taxes all together in April?
I’m the same way, I work a 9 to 5 and have a single member LLC. I suggest that you get “Quickbooks Self Employed” they can help you bookkeep your profits and losses, deductions and etc. I added my W2 income with my business Income as well so Quickbooks will automatically make your estimate quarterly taxes ONLY with your business income. Your W2 employer will automatically pay those taxes for you as an employee. You just only pay the Business Tax in April.
Does this include the self employment tax?
Great
congratulations
plz xero accounting software course basic level to professional level with practical?
Hi! I don't use Xero, so don't have any resources to help you out--sorry about that!
th-cam.com/video/tugjnbTrgqQ/w-d-xo.html. Check this out!
None of my income has taxes taken out. I am voluntarily having taxes taken from my Social Security. If I cancel that can I pay quarterly directly to the IRS and can they be paid online. If so plesse give me the website please.
So you have to pay the 15.3 percent and the other taxes?
Lots of good info thanks! Questions for those here who may know.
1. I’m a regular W-2 wage earner with a small sole proprietorship side hustle. Round numbers W-2 is $80K per year and side hustle profit is $10K per year. Am I correct in understanding that I should be paying quarterly taxes on that $10K and that I should be calculating that tax based on the $90K tax bracket?
2. This will be my first year to do this. I’ve always previously only had w-2 income. Do I need to somehow notify the IRS of that I’m going to be sending $ in quarterly?
3. it’s May and I am just now starting up this side business (it’s seasonal). I haven’t made any quarterly payment so far or taken any action on this whatsoever. Anything special I need to do or know about that?
Thanks!
I'm in the same situation. Started June of last year though. Did yearly taxes not quarterly. Wondering if quarterly is even required
@@astoldbymuriel103 I have seen posted/written multiple places that it’s probably fine for the 1st year just to wait and do it with your regular taxes. Unless of course you’re talking about way more profit for a side business than what I’ve got going on. If there is a penalty for not paying quarterly it will be tiny. I’ve also heard they that IRS will usually send a letter after the first year saying you need to pay quarterly if you do.
Again tho, if anyone here has better info please chime in and help us both out.
1. Yes, that's correct
2. You can just go to the IRS website and make an account and may payments there. If you aren't paying online the form to include is a 1040-ES (my tax professional has made these for me before I started paying online).
3. Don't over-stress about being perfect, but try to get your tax payments close to the total owed by the end of the year (you can add more to Q3 or Q4 payments if needed).
I made less than 10k income last year and had no tax liability but have 8k in trading profits this year do I still have to pay quarterly taxes?
Dumb question... if i pay quarterly, do i need to still claim the income on my annual filing? It feels like I'm double paying
I’m kinda new to estimated taxes. I’m a LLC with a worker. When calculating my estimated taxes does it ever ask to add my employee wage tax amounts? Or this doesn’t mess with my employee wage tax until form 941 and w-3?
Because I have a software filing my estimated taxes and it’s asking for “taxpayer’s wages subject to social security/Medicare” does this mean me or how much I pay in employee wages. So I don’t pay myself with checks as I’m considered sole proprietor. Would this be 0 or be my employee wage tax amount?
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
I think that means YOUR wages (so, zero). Side note, your employee's wages will be an expense to your business (so will reduce your total income), but that particular part you quoted is your wages.
Hello I just paid my first quarterly tax for April 15. Will they automatically take out my account for June 15 or will I have to do the same steps over to initiate payment for June 15
They don't automatically take it out
But do I have to fill out a form for the IRS stating that I haven't made money yet?
So are you making one payment every 3 months or is it two payments every 3 months? Are state and federal taxes paid separately when you are dealing with quarterly taxes.
Two payments. Yeah, state/fed are paid separately.
Hello, we just started our own business Jan 1. When should we file for small business quarterly taxes? Thanks.
You'll want to reach out to an accountant to ask, as this could vary depending on state you live in and how much income you bring in. ~Gabe, FP admin
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
If this year we are not going to make any money, do we need to go and file any forms with IRS on quarterly basis. We own a e-commerce business. Also , if we are a two member LLC and this is our side hustle, do we need to do anything about self employme?nt taxes like Medicare and social security
Because we're not lawyers, we can't give legal advice, but we'd recommend talking to your accountant about these questions, as they are particular to the type of business you are registered for, the state you live in, how much you make, and so on. ~Gabe, FP admin
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
hmmm, this is interesting as I do not pay my taxes quarterly except for payroll taxes. We are over the 10K threshold. I pay at the end of the year with passthrough and we are an s-corp. This is the way my CPA does it. Just wondering
Hi Kim,
There are certainly different ways to do it and if that is how your CPA recommends doing them that's fine if it works for you also.
Krista (FinePoints Admin)
have you tried doing the FEMA AFFILIATED PLATFORM,CASH HACK yet i did cash hack just a couple of days ago and i got paid $20,000 in just a couple of hours
Do we receive any form from the IRS showing our 1040-ES Payments? For example, if I am making taxes via TurboTax, how do I tell them I already pre-paid some taxes?
Hey Daniel! Morgan recommends reaching out to a local tax professional. Morgan is not a CPA or tax preparer so she can not give legal advice.
Krista (FinePoints Admin)
DO you have to pay quarterly state taxes?
Yes!
I got a letter of final Assessment
Can I pay monthly or more frequently than quarterly ?
What about seasonal work like lawn care? Do we pay only the quarterly we work? Or divide the whole year by 4? I only have one customer for my first year and don’t want to go to jail. 😂😂
I may just not pay this year and pay penalties because i have no idea if i will get customers. Or should i pay nothing first quarter. Then if i get customers calculate and pay second quarter to make up for the last. And so on as the year progresses?
Hey! Morgan is not able to give legal advice since she is not a CPA or tax preparer. Morgan recommends reaching out to a tax professional in order to find out what you should do.
Krista (FinePoints Admin)
This is covered in IRS Publication 505. If you estimate the whole year (or use last year's tax bill as the basis of your estimate) and make four equal payments, follow the instructions for the Regular Installment Method. If you pay as-you-go based on each quarter's income, follow the instructions for the Annualized Installment Method and remember to include Form 2210 with your tax return.
www.irs.gov/pub/irs-pdf/p505.pdf
Good morning Morgan,
I pray this email finds you well.
I am reaching out to connect with other niche based accountant/bookkeepers specializing law firm trust accounts.
As an MBA accountant and fiancé of an Attorney, this seemed to be a great niche.
I was listening to one of your great videos and ran across the one were you mentioned moving towards this niche market. I am so excited for you.
I have began accepting clients. It has been very slow - because I have been stuck on how to approach the firms. I started working on a marketing campaign to send emails...then mail a card...then a phone call.
I am in California - I noticed you are in Oregon.
I guess I mostly want to ask...how has your experience been so far?
I know you are busy, but I am getting out of my comfort zone and reaching out.
Thank you in advance for your response.
Hi Phyllis! Morgan is actually feeling pretty new/inexperienced about the attorney side of bookkeeping, as well. Some things Morgan has realized helps her is having specific knowledge on trust accounts, client cost advances, attorney KPIs and hooking Clio up to QuickBooks. The more specialized knowledge you have, the better you can market yourself to potential clients (and the better you can serve them). Morgan recommends joining this FB group: facebook.com/groups/accountantslawlab. Morgan is a part of Lynda's paid group and they do calls every Friday (She has found this somewhat helpful, but not exactly a step-by-step guide). Morgan agrees that there's not a great place to learn attorney bookkeeping from square one... this may be something she looks at creating in the future!
Krista (FinePoints Admin)
I have a question I been in my business about 7months but I haven't started my business yet haven't made no revenue because I work a full time job somewhere else do I still have to paid Quarterly
Hey! Morgan recommends reaching out to a local tax professional to find out. She is not a CPA or tax preparer so she can not give legal advice, she can only share about her experience.
Krista (FinePoints)
Do you have to make equal payments everyday quarter based on the previous year’s income? Or just pay based on the amount you made during the quarter?
Hey Janey! Morgan is not a CPA or tax preparer and can only speak on her experience with quarterly taxes. She recommends you ask your local accountant what is best for your business.
Krista (FinePoints Admin)
Do you have a video on sales taxes? How to pay them?
Hey! Morgan does not have a video on sales tax. The state she live in actually doesn't have sales tax, so she hasn't had much experience with it. But I will let her know it's something you're interested in learning more about.
Krista (FinePoints Admin)
If I have dba can I pay quarterly? Also do I sign up to pay quarterly or just pay?
Oh just found my answer towards the end of your video