Quote:
Originally Posted by mlmpetert
So you have to pay 90% of your the current years tax liability or 100% of last years tax liability (or 110% if you make over 150k) or otherwise you get hit with a 20% penalty (additional tax) on your underpayment. Im guessing that since first owns his own business his accountant has him make 100% or 110% (if first makes over 150k) tax payments based off of last years income taxes.
So i guess techniqely Obama is returning more of his money, but only because he earned less money and therefore doesnt have to pay as much taxes. Apparently when you own a small business your income isnt guaranteed (where are you Obama?) and you can actually make less money, no money at all or even LOSE money......
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You lost me on the first paragraph.
The nature of my business you cannot really go from making good money to loosing money from one year to the next. Now the business its self can loose money but thats after everyone gets paid so I'm not sure how that works with taxes. I do know if I leave any money in the business come January 1 I have to pay taxes on that money even though its in the business checking account. I hate that because at the end of every year it forces me to spend all the money in my business account or get hit with taxes.