21000 K Federal, 5000 K State, 600 City of Portland, 600 TriMet Tax...

[Danieljay]

Welcome to owning a small business and paying a 15% self employment tax.

Little or no business savings. We'll have to pay 2K per month back taxes and 2K per month estimated for the next 12 months. Thats 4K per month in Taxes alone.

Oh, and don't forget the 2600 per year in property taxes.

We made more money working for other people.

Where the eff is my bailout?

[Oregone]

1. Why don't you just S-Corp it?

Takes about 5 minutes in Oregon and $50 dollar filing

BTW, doesn't look too bad at all really.

[Danieljay]

4. Yep... we are now.. according to our accountant, will save us a total of 6000...

[Oregone]

7. Saved me a bit, and I made no where near that much

You take home $90K after tax? If so, doesn't seem too bad.

With that sort of dough, you ought to buy my Oregon beach home. :)

[Danieljay]

9. not after tax....

[Oregone]

12. So an effective rate of ~30%

You made off like a bandit actually for not being incorporated. Ive paid much more.

Cheer up a bit. Seems like your biggest problem is the back taxes.

[Danieljay]

14. You're right, could have been worse.. we just bust our ass and can't seem to get a break...

[TahitiNut]

2. ...

:nopity:

[A HERETIC I AM]

3. Careful. At $90K/yr you are a millionaire in some DU'rs eyes.

You are sure to get the "What are you complaining about? You're rich!" line.

[biopowertoday]

5. You are a Tea Partyer.

[Hannah Bell]

6. small business pays so our global corporations don't have to. don't you feel

patriotic?

then the gop cynically uses small business as the shock troops for their tax-cutting obsession. but somehow, the cuts mostly stay at the top.

[indigo32]

11. too true - NT

[Hannah Bell]

17. then there's the "liberal" tax-cutting faction...trickle-up...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5460919&mesg_id=5460919

[MNDemNY]

8. Looks like you did not plan very well.

[Danieljay]

10. we were paying back taxes all year from 2007... now we'll be paying 2008 and estimated...

planned just fine..

Just didn't make the money to pay both in 2008.

[Oregone]

13. BTW, the penalty for not paying estimated taxes is negligible

And you might get a better return on that money by actually using it. I didn't pay estimated for years and accepted the penalty. It helped me manage everything much better.

LOL...this is not professional tax advice! If 4K is too much monthly though, do what you can with estimated, as long as you can pay if off by next tax time.

[Danieljay]

15. We can pay it.. just have to make more, spend less... Raise our fees, sell more stuff...

[gratuitous]

16. Oh, and I suppose you think PGE should pay more than $10 annually?

How are they going to pay Peggy Fowler her retirement and severance? At long last, have you no sense of decency? No sense of shame? I suppose you'd like to see Peggy Fowler living on a fixed income in subsidized housing?

Gotta stop now; people at work will wonder why I'm smiling so broadly.