Results 1 to 18 of 18
  1. #1
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,005
    Being that I did not pay any taxes last year because I was tax exempt and considered the working poor, making a measly $25,000 a year, up until about June when I busted into the affiliate business.

    I guess I can't complain considering the above. At least it's under 10 grand. :eek:

  2. #2
    ABW Veteran Student Heyder's Avatar
    Join Date
    January 18th, 2005
    Posts
    5,482
    Want some good advice?

    File quartly

    Hey it was free<IMG src=http://www.abestweb.com/ubb/icons/icon26.gif> [img]/infopop/emoticons/icon_wink.gif[/img]

  3. #3
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,005
    Thanks Heyder - I'm already on it. I have an accountant now and she is setting me up to prepay my taxes quarterly. Unfortunately I did not obtain there services until the end of last year.

    But I'll be all set for this years taxes.

  4. #4
    Full Member
    Join Date
    January 18th, 2005
    Posts
    315
    If you don't pay quarterly, at least put away 25% of what you bring in each month. That way, you have the money come the end of the year at tax time. It's the same as if an employer were taking taxes out only you keep the money in the bank, earning interest, until the IRS wants it. And do you know what "the IRS" spells? THEIRS!

  5. #5
    ABW Ambassador
    Join Date
    January 17th, 2005
    Posts
    530
    Be aware if you don't pay in quarterly, you could also be hit with big penalties from the IRS.

  6. #6
    Member
    Join Date
    January 18th, 2005
    Posts
    153
    Actually wayne the penalties are not that big. Me and my brother run our own business and we havent actually paid quarterly in 9 years and the penalties are only about 300 bucks. Now its not chump change but its not that big of a penalty. We are actually going to start quarterly this year because its kind of a pain to write tham a huge check every year. I guess 4 payments hurts less than 1 big one [img]/infopop/emoticons/icon_biggrin.gif[/img] .
    Here is what we ACTUALLY DO

  7. #7
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,005
    I think I'll pay quarterly. [img]/infopop/emoticons/icon_smile.gif[/img] :eek: :rolleyes:

  8. #8
    Full Member
    Join Date
    January 18th, 2005
    Posts
    218
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Actually wayne the penalties are not that big.<HR></BLOCKQUOTE>

    The penalty is 9% of the unpaid taxes. That could add up to an amount much larger than $300.

  9. #9
    Newbie
    Join Date
    January 18th, 2005
    Posts
    591
    At least your taxes are lower with G.W. Bush than they would have been with Al "I invented the Internet" Gore. [img]/infopop/emoticons/icon_wink.gif[/img]

  10. #10
    Newbie
    Join Date
    January 17th, 2005
    Posts
    1,537
    Actually taxes are no different whether dumb or dumber is running the show.

    Who's dumb and dumber changes with each election.

    Yo...Jada give your kids some internet chores to do and pay them $2,000 each and put it in an IRA for them...you just got a $w,000 write off for each kid.

    If you don't have a retirement plan at work...start a Self Employed one...ask your new accountant about these things. You can cut your taxes in half pretty easily if you have the cash to set up the programs.

  11. #11
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,005
    Thanks Professor. I'll have to ask about such write-offs for this year. But were you serious about the kids???

  12. #12
    Super Sh!t Stirrer SSanf's Avatar
    Join Date
    January 18th, 2005
    Posts
    9,944
    About the kids, yes! People do it all the time.

  13. #13
    Newbie
    Join Date
    January 17th, 2005
    Posts
    1,537
    It's easy to make money...real hard to keep it.

    Once you pass the $100K mark you get ye old royal shafteroo from your good old uncle.

    When you add up all the taxes from every place that dings you, once you pass the $100k in earnings mark you got to pay close to 50% in taxes. Unless you take the time and effort to learn how to minimize the pain.

    34% in Fed tax, propery taxes, sales tax, auto taxes etc, etc, etc.

    Hiring the kids is a good way to save some of the dough. But there are rules to follow.
    You pay the kids wages and keep the records. Then as the guardian you deposit the money
    in an IRA for them.

    Each kid has to file a tax return.

    You get to write off the wages and they write off the money put in an IRA. since they aren't making enough to pay taxes, they keep it all and you get to write off the whole thing and save the taxes.

    Another good write off deal is that you can write off up to $17,000 in expenses in lieu of depreciation if you are a small business.

    Also, if you have a 'day job' and they take the money out for SS and Fed Taxes, you don't have to file quarterly business taxes as you are paying into the system.

    If you have a 'day job' and know you will have to pay more taxes due to your business,
    lower the withholding to ZERO dependents.

    More money will be zapped from your paycheck but if you owe more, the check you have to write will not be as big.

    All the info you need to learn is at your local library - go read it.

  14. #14
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,005
    Professor - but my kids are only 12 and 9. Do they have be a certain age?? I am going to also hire my mother as a consultant - so that will be a nice write off too. I plan on having tons of write off this year to off set reaching to 50% tax pay out. That's a whooper!!! :eek:

  15. #15
    Newbie
    Join Date
    January 17th, 2005
    Posts
    1,537
    There should be no problem with the ages 9 & 12. They need a SS number though. If anyone asks tell them they are delivering papers.

    You could make flyers for your website and have the older one stick them on cars in the parking lot while you are at the supermarket.

    If they have 'show and tell' at school, have the younger one tell all the kids about their mom's internet business and give each kid a flyer to take home.

    Set up a money making webpage for each kid.
    The money from each page funds the kids wages.

  16. #16
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    2,279
    Jada, I recommend speaking with your accountant AND someone who knows the child labor laws in your state before embarking on this little deception. Getting in trouble with the IRS or Child Welfare can be much more expensive than just paying your taxes.

  17. #17
    Crazy Cat Lady Heidi's Avatar
    Join Date
    January 18th, 2005
    Location
    Rochester, NY
    Posts
    1,685
    529 college savings plans
    Families interested in saving to finance a child's college education get a number of tax benefits under the recently enacted tax-cut law, with the focus on the tax exemption bestowed on Section 529 college savings plans.

    These plans, named after the section of the tax code that governs them, are the more attractive siblings of prepaid tuition programs. Anyone, regardless of income, can open an account and invest a hefty amount in stock and bond funds (more than $150,000 in many states). Most plans let you in with as little as $25 a month. You can use the money at any school in the country, and you maintain control until the child enters college.

    Prior to legislative changes in 2001, 529 plans grew tax-deferred until withdrawn, at which point the earnings were taxed at the student's rate, making them only modestly better than saving in the child's name. Now, investment earnings inside the plans remain untaxed. But starting in 2002, distributions to students will be exempt from federal tax, too, as long as the money is used for higher education. (This tax exemption is set to expire in 2011.) This puts 529 plans clearly ahead of such options as saving in the child's name via a custodial account or in the parents' name in a fully taxable account.

    Given the generous tax advantages—plus the opportunity to shelter enough cash to actually make a dent in those six-figure tuition bills—529s are on their way to becoming the collegiate version of the 401(k). In addition, states increasingly are turning over the operation of their 529s to established money-management firms.

    Unlike 401(k)s, these new programs may not be right for everyone. One major limitation is the lack of flexibility: Once you select an investment option, you cannot change it—unless you follow a cumbersome rollover procedure. If you need to tap the account for any reason other than education, you will pay a 10% penalty. Another flaw: A 529 account can end up hurting your student’s chances of obtaining financial aid.

    To look at what your state may be offering, visit www.collegesavings.org, a Web site run by the College Savings Plans Network, an affiliate of the National Association of State Treasurers. It has some general information about the plans and links to states' sites. To get information over the phone, call 877-277-6496.

    Education savings accounts
    Education IRAs, now called Coverdell Education Savings Accounts, offer the potential for tax-free investment growth when you use the account to pay for a child's qualified higher education expenses. You may invest up to $500 per child per year in a Coverdell Account; however, this will increase to $2,000 in 2002. Note: This does not count against the maximum you can invest in your own traditional or Roth IRA.

    Coverdell Accounts are available to individuals with a modified adjusted gross income less than $160,000 for joint filers (that rises to $190,000 in 2002), or less than $110,000 if you're single. Although the account is in the child's name, the parent or guardian controls the account until all of its assets are withdrawn. No contributions may be made after the child turns 18, but the account can remain open until the beneficiary turns 30. If the funds haven't been used by that time, the account balance must be withdrawn within 30 days. In that event, applicable income taxes, plus a possible 10% tax penalty, would apply to earnings.

    Withdrawals from a Coverdell Account are free from federal income taxes as long as they're used to cover the costs associated with education, such as tuition, books, fees, and supplies. Students enrolled half time or more also may make tax-free withdrawals to pay for room and board.

    If the money is used for other purposes, earnings are taxed as ordinary income and may be subject to an additional 10% penalty. If the child named on the account doesn't attend college, you can transfer the account to another member of the family to pay for his or her higher education expenses.

    Starting in 2002, you can use Coverdell Accounts to pay costs for elementary and secondary schools. Qualified expenses include tuition, uniforms, transportation, room, board, books, and computers and are allowable for students at public, private, and parochial schools. It would be tough to save a whole lot by the time a child entered first grade, but starting an account for an infant with the idea of using it for high school could be beneficial.

  18. #18
    Full Member
    Join Date
    January 18th, 2005
    Posts
    462
    Hey All!

    I just got my taxes done this morning and the verdict is in, I OWE Taxes Out the WAZOOO! It's times like this I want to flee to Canada... [img]/infopop/emoticons/icon_smile.gif[/img] Oh well.

    Core

  19. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Governors that have vetoed and opposing affiliate taxes or internet taxes
    By Jorge - SHOPiMAR in forum Affiliate Tax Laws
    Replies: 2
    Last Post: February 12th, 2010, 08:39 PM
  2. How much does Linkshare owe me?
    By enginez in forum Rakuten LinkShare - LS
    Replies: 5
    Last Post: November 8th, 2006, 01:23 PM
  3. Tyco Verdicts Coming In....
    By Kellie aka Ms. B in forum Midnight Cafe'
    Replies: 0
    Last Post: June 17th, 2005, 02:56 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •