Taxes

[Chatter Box]

So this was my first year doing my taxes for my daycare. I was sooo nervous! I had been saving quite a bit. I had a hunk saved and braced myself... She told me we would be getting back twice the amount I had saved. Not sure if that's because we have also a rental property we bought a new ac furnace and water heater for, ect. Plus start up daycare costs. So I'm finally replacing the dishwasher with a top of the line dishwasher. I have been dying to get a new one for three years. paid off my car and some other debt and haven't even touched what I had saved. Not planning to. My accountant said I probably don't need to worry about paying quarterly taxes since I got so much back.

Really?! So... Is this typical? Is it normal to get a credit? I'm going to keep saving like I have been but I'm nervous about not paying into taxes at all. And what about social security? I haven't asked her about that. Does the accountant file that or do you do it somewhere else? How do you calculate it?

[MyAngels]

It's not typical for me, I almost always owe at least something, but I don't have rental properties, either. If you feel like your accountant has a good grasp of all of your financial affairs as they relate to taxes then I'd trust what he/she tells you.

Social Security is paid by your self-employment tax - in effect you are paying what an employer would withhold and their portion, too. That's calculated on the tax return itself (Schedule SE).

[EntropyControlSpecialist]

Wow, that is so lucky! Doesn't work that way for me. ::

[blandino]

Definitely not typical ! In 11 years, we have gotten a refund twice.

[mema]

Nice! I wish it worked out that way for me! I would say also that if you trust your accountant, then I wouldn't worry about paying in unless you find yourself making more and not spending as much. Maybe still save some just in case.