same here Do you have any idea where you invest it for short term benefits & can come back on your hand easily without paying any tax? Thx
any revenues you make are going to be taxable eventually. if you dont want to pay now, invest in something. you can adjust your tax brackets by controlling how much net profit you earn. if you want to invest in something, invest in websites that will "earn" revenues in the new year. invest in supplies and equipment. invest in another buisness. donate to charity. the more of these questions you need to ask, the more you need a professional accountant (whose fees by the way are also tax deductable). while you can play with your tax bracket and tax burden, eventually if you want cold hard cash in your pockets, you are going to be paying taxes on it. its your money, if you use it wisely, you can keep most of it... eventually. jmo
I am confidentI have pulled enough money out of each check for taxes, but I am worried about the penalization since I never payed each quarter or whatever. LOL
There is a legal loophole on the penalty and all of you still have time to take advantage of it. The rules state that if this years total taxes paid through withholding or estimated tax payments is equal to or more that the total tax bill for the prior year than no penalty will be due if the return is filed and the balance due is paid by April 15. Our state tax has the same rules. Yours may be different. You have until Jan 15, 2007 to make an estimated tax payment for the fourth quarter of 2006. So get out last years tax return and go to something like line 62, the line that says this is the total you owe. Take your last paystub for all sources that have withholding and compare the amounts. Pay in enough estimated taxes so that the total you have paid in is greater that last years line 62. No matter how much you owe there will be no penalty or interest due. I do it this every year. Just cover the prior year's liability and send them a chunck on April 14. Of course after the first year you must make quartery payments equal 1/4 of the estimated tax due.