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Question. How could I know in advance how much money would I make ...

Discussion in 'General Business' started by ST12, Dec 23, 2005.

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  1. #1
    Question. How could I know in advance how much money would I make so as to pay the FICA, and Social Security tax to the IRS?

    It makes no sense to pay in advance taxes you don't know what amount you will get. May be I don't understand something. But if people are right about paying your taxes before you received your earnings that seems quite unfair for the new start ups with no established earnings. You're almost sure to be fined by IRS for late pay.

    My case for example. I started adsense in august, how am I supposed to know will I make money, and if .... how much that would be?

    Tell me please am I missing something in this issue.

    Thank you,
    ST12
     
    ST12, Dec 23, 2005 IP
  2. digitalpoint

    digitalpoint Overlord of no one Staff

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    #2
    You don't *have* to prepay your taxes (quarterlies) if it's your first year. Basically you pay quarterly pre-payments based on your current year estimated earnings, OR based on your previous year income. So if it's your first year making income, you don't have to pay quarterlies. But the following year you will be required to.
     
    digitalpoint, Dec 23, 2005 IP
  3. debare

    debare Peon

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    #3
    Shawn is absolutely correct, but talk to an accountant! You need someone who can offer you professional advice that is tailored to your individual financial situation. Not getting good advice now may cost you big bucks later on.
     
    debare, Dec 23, 2005 IP
  4. ST12

    ST12 Active Member

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    #4
    Thank you guys! I spoke today with an accountant. Things are OK.

    Merry Christmas!

    Much success to you in the
    New Year.

    ST12
     
    ST12, Dec 23, 2005 IP
  5. jbw

    jbw Peon

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    #5
    I think you also have to make sure you pay at least as much as you did the year before to avoid fees. So you would have to make quarterly payments of at least as much as you used to have withheld if your income will exceed what you made the year before, and of some amount even if it does not, but is enough to have to pay taxes on.
     
    jbw, Dec 24, 2005 IP
  6. ST12

    ST12 Active Member

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    #6
    Thank you jbw. That was helpful.

    Merry Christmas to you!
    ST12
     
    ST12, Dec 24, 2005 IP