Comments on: How I Plan on Reducing My 2008 Taxes http://cashmoneylife.com/2008/12/23/how-i-plan-on-reducing-my-2008-taxes/ Money Management, Small Business, Career Mon, 22 Mar 2010 01:21:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ryan http://cashmoneylife.com/2008/12/23/how-i-plan-on-reducing-my-2008-taxes/comment-page-1/#comment-16023 Ryan Tue, 06 Jan 2009 17:13:16 +0000 http://cashmoneylife.com/?p=1212#comment-16023 <strong>StartUp: </strong>You are correct; it doesn't decrease my taxable income, all it did was increase my withholdings from my day job. The reason I did it that way was because I did not pay any estimated taxes on my self-employment income. The method described in this article is certainly not the best way to go - it just kind of happened that way because I did not have a good idea of how much I would earn from my business in 2008. I plan on changing my W-4 in 2009 and paying estimated taxes as I go. That is a better way to ensure I will pay the proper amount of taxes in 2009. StartUp: You are correct; it doesn’t decrease my taxable income, all it did was increase my withholdings from my day job. The reason I did it that way was because I did not pay any estimated taxes on my self-employment income.

The method described in this article is certainly not the best way to go – it just kind of happened that way because I did not have a good idea of how much I would earn from my business in 2008. I plan on changing my W-4 in 2009 and paying estimated taxes as I go. That is a better way to ensure I will pay the proper amount of taxes in 2009.

]]> By: StartUp http://cashmoneylife.com/2008/12/23/how-i-plan-on-reducing-my-2008-taxes/comment-page-1/#comment-16022 StartUp Tue, 06 Jan 2009 17:07:50 +0000 http://cashmoneylife.com/?p=1212#comment-16022 Does increasing your W4 withholding really decrease your taxable income? Doesn't it just mean you are paying more of your taxes early and are then not able to earn interest on it? Not trying to be nitpicky. Great post though, lots of good info for people with combined self-employed and standard income. Does increasing your W4 withholding really decrease your taxable income? Doesn’t it just mean you are paying more of your taxes early and are then not able to earn interest on it?

Not trying to be nitpicky. Great post though, lots of good info for people with combined self-employed and standard income.

]]> By: Ryan http://cashmoneylife.com/2008/12/23/how-i-plan-on-reducing-my-2008-taxes/comment-page-1/#comment-15873 Ryan Wed, 24 Dec 2008 22:26:58 +0000 http://cashmoneylife.com/?p=1212#comment-15873 Donny, I agree, the write-offs available to small business owners are a nice benefit! Donny, I agree, the write-offs available to small business owners are a nice benefit!

]]> By: Ryan http://cashmoneylife.com/2008/12/23/how-i-plan-on-reducing-my-2008-taxes/comment-page-1/#comment-15872 Ryan Wed, 24 Dec 2008 22:26:19 +0000 http://cashmoneylife.com/?p=1212#comment-15872 Craig, my goal in doing this was because I knew I would have self-employment income, so I withheld extra from my day job. Otherwise, I probably wouldn't have done it. Craig, my goal in doing this was because I knew I would have self-employment income, so I withheld extra from my day job. Otherwise, I probably wouldn’t have done it.

]]> By: Donny-invesmint.com http://cashmoneylife.com/2008/12/23/how-i-plan-on-reducing-my-2008-taxes/comment-page-1/#comment-15869 Donny-invesmint.com Wed, 24 Dec 2008 18:22:23 +0000 http://cashmoneylife.com/?p=1212#comment-15869 I plan on doing some of these same things to reduce taxes for 2009. It helps tremendous to own your on business because you can write a lot of stuff off. I plan on doing some of these same things to reduce taxes for 2009. It helps tremendous to own your on business because you can write a lot of stuff off.

]]> By: Craig http://cashmoneylife.com/2008/12/23/how-i-plan-on-reducing-my-2008-taxes/comment-page-1/#comment-15859 Craig Tue, 23 Dec 2008 19:40:53 +0000 http://cashmoneylife.com/?p=1212#comment-15859 The with holding taxes idea is great. The small amount more they take every week doesn't really matter and you won't notice it. When you do get that check returned it feels like a bonus you weren't expecting or planned for. The with holding taxes idea is great. The small amount more they take every week doesn’t really matter and you won’t notice it. When you do get that check returned it feels like a bonus you weren’t expecting or planned for.

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