Boring Tax Question

[NightOwl]

I think I did it wrong. I know nothing about taxes. Someone recommended turbo tax because they have a program for home based businesses. So I did that.

It walked me through all the steps and recognized my business as a home daycare. I entered in every penny I earned and all of my deductions. Taxes done. Good refund.

But I've seen in the forum where people mention paying quarterly taxes, social security, self employment taxes, etc. And I'm like, yeah I didn't do that.

Could turbo tax be wrong? It asked me if I had made quarterly tax payments And I answered no. No red flags came up and we still received a nice refund. I cannot afford an accountant, so I thought someone may offer their advice?

[Shell]

I also use Turbo Tax, and love it! I did have to pay the self employment deduction, but it was calculated for me. I don't recall seeing anything else specifically about the other taxes you mention, but TT is excellent about walking you through every possible scenario. The only thing I found to be a little tricky was the Time/Space section- it's kind of hidden, and difficult to go back to. I had to enter in the search box to find it, and year to year, I often forget. I find I always owe every year, and I also do not pay estimated or quarterly taxes.

[Michael]

I can't give you tax advice since I am not a professional CPA. In my opinion I would rely on the Turbo Tax if I couldn't afford an accountant. The tax laws are so complicated. I would at least feel better using an up to date tax preparation software for a business than doing it myself.

Some more threads on Turbo Tax: https://www.daycare.com/forum/tags.php?tag=turbo+tax

[NoMoreJuice!]

No worries, you are probably just fine! You paid taxes though (social security, medicare, federal, state). You got a refund because your husband overpaid by withholding too much all year long. You don't have to pay estimated quarterly taxes unless you think you'll owe a big chunk at the end of the year.

Example:

Your hubs withheld 7,000 for federal tax in 2013
On your tax return, you paid in 1,500
On your tax return, hubs paid in 3,500

7,000-1,500-3,500=2,000 overpayment(refund)

[NightOwl]

Phew! I was so nervous I had shorted some federal or state agency on taxes! I felt really confident with turbo tax, but then started reading how others were paying quarterly taxes and such. Thanks so much for your input!