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In reply to the discussion: I'm a CPA with a small tax practice [View all]Neema
(1,151 posts)Maybe not in every industry, but in mine December-February is a little slower, so you're not billing as much. Then in April you have to pay taxes owed from the previous year PLUS quarterly estimated taxes for the current year. You try to prepare for it as much as you can, but when you can't predict your income from month to month, it can be difficult. In 2017 I had an average year of income, but got really busy right at the end of the year. So my yearly income total ended up being higher than average, but I didn't have time to really account for it by paying extra on my quarterlies, or making a deductible purchase to help. When April rolled around, I owed HUGE, plus my quarterlies got increased accordingly. I thought I'd maybe owe a few thousand. Instead I owed a combined total (taxes + quarterlies) of more than the cost of a new Honda Civic.
And that was LAST year. This year I'm utterly terrified. I was crazy busy the whole year, so much so that I had to hire lots of subcontractors, so I don't yet have a good sense of how that's going to help me. But with the tax scam, I'm nervous AF that I'm not going to be able to pay what I owe, despite saving as much as I could.
Only in Republikkkan America can you have a good year but ended up being poorer than you were before. Makes me wonder why I'm working 70 hours a week. I'd be happy to pay big taxes if our money went towards universal healthcare and well-funded national parks and infrastructure. But it's all going to a small group of men who already have more than they could ever spend in a lifetime. FUCK THAT.