Oh No! I Owe, Alot!

[Unregistered]

So I owe about $1500 to fed. Should have paid estimated this year. I am guessing state will be close to that too. YIKES!!!

I have never had to pay before. Advice for payment??? Advice for preparingfor the future??

[daycarediva]

I owed about twice that this year. I put 20% aside every week when parents pay me. It MORE then covered it (and I just paid my bills for April and put some in savings with the remainder)

[EntropyControlSpecialist]

Did you pay in quarterly taxes?

Last year I did not (there's a reason why) and holy cow was the amount owed HIGH! I'm looking at $1500 thinking that sounds fantastic. ::

This year, 20% will be sent in through the quarterly taxes.

[CedarCreek]

I'm sorry

I did the same and put 20% back but I ended up not needing to. I broke even basically. We will see about next year though!

[itlw8]

That is alot to owe . Are you sure you took all the deductions? did you include depretiation on your house ? and the t/s of your interest ins and everything like that.

What is your time / space percentage. did you add up all you time including cleaning of the childcare area.

How much of that was self employment taxes and how much income. all of our taxes were written off as a credit except my slef employment taxes. HOW the savers credit for putting money into an IRA> it is not a ROTH It is not a $ for $ credit but it goes to my retirement not the IRS.

[Unregistered]

We owed the feds $3300 last year. This year, our bill is $560. I paid quarterly payments all year for 2012 and plan on upping them this year in 2013.

[Crazy In Mo]

We owed over $5000 last year. That was without me working..... I'm NOT looking forward to this year. Taxes=YUCK!

[lilcupcakes09]

I also owe this year....for the first time. I'm ready to cry. How do you providers who do make quarterly payments do it? Is it calculated by your gross income without taking any expenses out? It seems it would be too difficult for me to figure my income after expenses for each quarter. I guess if I just paid towards what my gross is I will overpay then probably end up with a refund in the end?

I'm barely making it now and get to add another payment each month to the IRS

[Blackcat31]

I also owe this year....for the first time. I'm ready to cry. How do you providers who do make quarterly payments do it? Is it calculated by your gross income without taking any expenses out? It seems it would be too difficult for me to figure my income after expenses for each quarter. I guess if I just paid towards what my gross is I will overpay then probably end up with a refund in the end?

I'm barely making it now and get to add another payment each month to the IRS

Here are a couple really good threads about paying quarterly taxes and how to figure out what to pay.

The first thread posted by MarinaVanessa has great info in it.

https://www.daycare.com/forum/showthread.php?t=30403

[lilcupcakes09]

Also, once you start to pay quarterly, you must continue throughout the year or get penalized right?

[allsmiles]

it looks like i will owe a lil over $2000..i saw that irs will allow a payment plan.. is theire a timeframe to do that?

[earlystart]

it looks like i will owe a lil over $2000..i saw that irs will allow a payment plan.. is theire a timeframe to do that?

When you submit your taxes that's when you can sign up for a payment plan. Usually you'll send one payment with the taxes, as much as you can afford, then tell them how much you can afford each month, say $100, then they will send you a packet in the mail with information on signing up for the payment plan and what fees will be added and you can set up direct debits for the payments if you'd like, or mail monthly checks.