Pampered Chef'rs With Full Time Jobs...tax Questions

[HealthNut]

Ok, so I will be starting my business soon (ordering the kit tomorrow!!) and my husband and I use an accountant for our taxes (so I know it'll be easier than figuring it out on our own...)

But for those of you with full time jobs ALREADY and only use PC as a suplemental income - I know that PC does not take out taxes when you get paid...do you guys set aside a specific amount when you DO get your paycheck for taxes? Does it / will it really make THAT big of a difference?

What should I make sure to keep track of, spending-wise, to take to my accountant in the spring?

Anything and everything you can think of that I should know would be GREATLY appreciated!!

 

[pamperedchef88]

Well my first thought is make sure you put the P3 system to work for you and be better then I am at entering all your expenses for each show. Expenses to keep track of off the top of my head is
gas miliage
postage (for invites or mailings)
labels
Business cards
Ingredients that you may use
host gifts that you give
Envelopes
of couse your supply orders and product samples

Im sure theres more but this is a start

 

[PampChefJoy]

I have 2 separate side businesses in addition to working full time and I could pay estimated taxes, but what I chose to do this year instead is increase the withholding on my full time job so that the max is taken out. Based on what I made last year, it would be a toss up between doing that, or paying quarterly estimated taxes, and I find it easier to have it withheld... (though I get less take home, but I do get all the self-employment income without worrying about keeping some out).

 

[chefheidi2003]

I get an addition $10 a pay taken off so that I don't have to worry about paying in at the end of the year. I don't really do a lot of PC so that is plenty for me and I still get about $700 back every year. So I will continue doing that much until my business is booming and I have to pay in.

 

[Intrepid_Chef]

PC has "lost" me money for most of my time. But that's because I'm very good at recording expenses. NICE write-off for me.

I also count zero dependants at work ... but I have 2 dependents on my tax return, to make a long story short.

My first year in business I made a marginal profit ... but that's because of another business I left behind, PC counting my PC dollars as income b/c I hadn't spent them yet, a bank account that paid me for opening said account, and a medical study that paid me $700 for time and travel. I still got a return, just a pretty small one.

(Oh, and if you stop at Wal-Mart on your way home from work, the mileage to and from that store from your house counts. I told my accountant I only stopped at that one b/c it was on my way home. She said "It doesn't matter. your business is in your house.")

 

[lt1jane]

I love PC and that was a huge motivator to becoming a consultant. The other reason was my husband sold his business and we wanted the benefits of owning a business for tax purposes. I tend to break even or lose a little with PC (I am a hobby consultant).

For me, the write offs are key. Do you know that as a local business person, you need to keep current on community happenings? This means that the subscription to your local newspaper can be written off.