What an Eye-Opener :(

[Josiegirl]

I just had my taxes done and have to pay in $1000. Next year is going to be far worse because I won't be listing any dependents at all. He projected, based on this year's income and expenditures I'll owe close to 6 grand for federal and 500 for state.
Is there any way to lessen that at all? Any more deductions I could be taking? He suggested making less money or spending more. Well, yeh, but I can't afford that either??!!
Is everyone in the same boat as I am? What do those of you without dependents do??

[daycare]

I just had my taxes done and have to pay in $1000. Next year is going to be far worse because I won't be listing any dependents at all. He projected, based on this year's income and expenditures I'll owe close to 6 grand for federal and 500 for state.
Is there any way to lessen that at all? Any more deductions I could be taking? He suggested making less money or spending more. Well, yeh, but I can't afford that either??!!
Is everyone in the same boat as I am? What do those of you without dependents do??

its hard to compare, but I owe $10,525.00 Not happy, but I also did file quarterly and so I am wondering if some that is a fine for not filing during that time frame.

Ugh....and I have dependents 3 of them.....

[daycarediva]

We owe about 16k this year. My accountant said the same. That's with 4 dependents and a BUTT LOAD of deductions (daycare+dh's business+medical expenses).

[Josiegirl]

its hard to compare, but I owe $10,525.00 Not happy, but I also did file quarterly and so I am wondering if some that is a fine for not filing during that time frame.

Ugh....and I have dependents 3 of them.....

He told me 10 bucks of that was because I owed over 1000(I think the total was 1028 that I owe)and didn't pay throughout the year. I asked him what does the IRS care as long as you pay by April 15th???

Oh my I couldn't imagine owing Uncle Sam 10K. And 3 dependents??

[Josiegirl]

We owe about 16k this year. My accountant said the same. That's with 4 dependents and a BUTT LOAD of deductions (daycare+dh's business+medical expenses).

Holy Crapola!!

[Play Care]

We owe about 16k this year. My accountant said the same. That's with 4 dependents and a BUTT LOAD of deductions (daycare+dh's business+medical expenses).

Holy cow!!!

We switched accountants this year and I'm feeling pretty nervous. DH did go armed with a lot of Tom Copeland articles so we shall see::

[daycare]

We owe about 16k this year. My accountant said the same. That's with 4 dependents and a BUTT LOAD of deductions (daycare+dh's business+medical expenses).

wow I don't feel so bad any more.....

ugh that stinks diva...

[spud912]

Ugh I can't imagine! :hug:

Is there any way you all can adjust how much is deducted from your husband's paychecks?

[NightOwl]

This is the one thing that has me thinking twice about this profession. I'm making good money, but if the irs wants a quarter of it every year, I just can't do it. I might as well work outside the home making less money, but not have to worry about taxes every year. Is this typical for our line of work? To owe a large chunk every year?

[Blackcat31]

My DH and I have always been self-employed.

We've always owed.
Some years we've gotten enough back from Federal to pay what we owe to state and other years we just owe them both.

Some years it's a couple $1,000 and other years its only a few $1,000 but we owe every year regardless.

Josie~ We've messed around with all sorts of scenarios and bottom line is always the same....
spend more OR make less if we want to change what we owe each year.

[daycarediva]

My DH and I have always been self-employed.

We've always owed.
Some years we've gotten enough back from Federal to pay what we owe to state and other years we just owe them both.

Some years it's a couple $1,000 and other years its only a few $1,000 but we owe every year regardless.

Josie~ We've messed around with all sorts of scenarios and bottom line is always the same....
spend more OR make less if we want to change what we owe each year.

Same here since we have both been self employed. Years ago when I was legally unlicensed dh worked for someone and we adjusted his deductions in each paycheck to reflect what my taxes would be. We broke even then.

The year he left the company, we ended up getting back a return (our income reduced by half) and now that his own company is doing quite well, we get hit HARD.

[Josiegirl]

The gov. would take money if we worked outside the home too. It just came as an absolute shock to happen so quickly. I've been spoiled because I've had 2 dds in college. My oldest graduated in Dec. and wants to do everything herself, including not be a dependent. So I lost her as an exemption. Having only 1 dd left in college brings me to owing 1000 for 2014, and having no FT kids in college next year brings the giant change.
I've been really spoiled and now feel the panic of the realization.

Oh yeh, there was one other suggestion he made. Adopt a kid.
I'll just keep pressing on doing the best I can and know enough now to set money aside, pay quarterly, that sort of thing.

[jenboo]

I'm scared to see what we are going to owe. I didn't pay quarterly but I have been saving up.
I had dh claim extra but it doesn't look like it did much.
It's just us so no dependents... I cannot wait for this baby to be born! Yay for another tax deduction

[TomCopeland]

taxes

I just had my taxes done and have to pay in $1000. Next year is going to be far worse because I won't be listing any dependents at all. He projected, based on this year's income and expenditures I'll owe close to 6 grand for federal and 500 for state.
Is there any way to lessen that at all? Any more deductions I could be taking? He suggested making less money or spending more. Well, yeh, but I can't afford that either??!!
Is everyone in the same boat as I am? What do those of you without dependents do??

The advice to make less money or spend more money is absolutely crazy! This is insane thinking. If you made $2,000 more this year, your taxes would go up by maybe $600, so you would have $1,400 left over to pay for your other taxes.
If you spent $2,000 more on business items, your taxes would go down by about $600. But, you just spent $2,000 to get a $600 refund!

You can reduce your taxes by: making sure you claim every business deduction you can (depreciate inventory of household items you owned when your business began), contribute to an IRA, spend less (not more!) so you have more money to pay your taxes.

[Abigail]

How would I setup an IRA for myself and how does it benefit me?