Comments on: How I Plan on Reducing My Taxes http://cashmoneylife.com/how-i-plan-on-reducing-my-2008-taxes/ Money Management, Small Business, Career Wed, 23 May 2012 21:16:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Ryan http://cashmoneylife.com/how-i-plan-on-reducing-my-2008-taxes/#comment-29512 Ryan Wed, 23 Feb 2011 04:17:15 +0000 http://cashmoneylife.com/?p=1212#comment-29512 Mike, the IRS looks at is all as one pot of money if you are a sole proprietor, so that could be an effective way to manage your withholding. Be sure to consult with your tax advisor if your situation changes to ensure you are doing the right thing. Mike, the IRS looks at is all as one pot of money if you are a sole proprietor, so that could be an effective way to manage your withholding. Be sure to consult with your tax advisor if your situation changes to ensure you are doing the right thing.

]]> By: MIKE http://cashmoneylife.com/how-i-plan-on-reducing-my-2008-taxes/#comment-29499 MIKE Tue, 22 Feb 2011 10:17:03 +0000 http://cashmoneylife.com/?p=1212#comment-29499 Can I increase my witholding amount at my day job to cover my self employment liability from my small part time cleaning business.Since irs wants us to e-file Im leary of giving routing numbers and such.Also working these hours leaves little time to do the quarterly thing. Can I increase my witholding amount at my day job to cover my self employment liability from my small part time cleaning business.Since irs wants us to e-file Im leary of giving routing numbers and such.Also working these hours leaves little time to do the quarterly thing.

]]> By: Ryan http://cashmoneylife.com/how-i-plan-on-reducing-my-2008-taxes/#comment-23158 Ryan Thu, 15 Apr 2010 23:48:48 +0000 http://cashmoneylife.com/?p=1212#comment-23158 Sissy, it turned out well for me. The Solo 401k allowed me to reduce my income taxes by a fair amount and I was within the safe harbor limits for my estimated taxes. Since I published this article I have been more diligent about calculating my estimated taxes and I have been working with an accountant to better prepare myself for filing deadlines, estimated taxes, and other fun things! I highly recommend working with an accountant if you have a complex tax situation or your income is primarily from contracting or self-employment. Chances are you can save a lot of money by working with a tax pro! Sissy, it turned out well for me. The Solo 401k allowed me to reduce my income taxes by a fair amount and I was within the safe harbor limits for my estimated taxes. Since I published this article I have been more diligent about calculating my estimated taxes and I have been working with an accountant to better prepare myself for filing deadlines, estimated taxes, and other fun things! I highly recommend working with an accountant if you have a complex tax situation or your income is primarily from contracting or self-employment. Chances are you can save a lot of money by working with a tax pro!

]]> By: Sissy http://cashmoneylife.com/how-i-plan-on-reducing-my-2008-taxes/#comment-23155 Sissy Thu, 15 Apr 2010 22:37:57 +0000 http://cashmoneylife.com/?p=1212#comment-23155 Ryan- How did it turn out for you? I am looking for a similar strategy since I had sort of a windfall and a raise. Overall I'll have to claim about 25k more than last year. Can you help? Ryan-
How did it turn out for you? I am looking for a similar strategy since I had sort of a windfall and a raise. Overall I’ll have to claim about 25k more than last year. Can you help?

]]> By: StartUp http://cashmoneylife.com/how-i-plan-on-reducing-my-2008-taxes/#comment-16022 StartUp Tue, 06 Jan 2009 18:07:50 +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/how-i-plan-on-reducing-my-2008-taxes/#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: Ryan http://cashmoneylife.com/how-i-plan-on-reducing-my-2008-taxes/#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/how-i-plan-on-reducing-my-2008-taxes/#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.

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