PCCHeather0506
Silver Member
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PCCHeather0506 said:How much have you had to pay in taxes? I'm getting nervous with tax season coming up and I haven't saved anything yet for this?? Can anyone give me a ball park figure? I can imagine everyone is different...but anything would be helpful! I think I sold around $15,000 or so for the year. Any idea?
finley1991 said:Yes... definitely get a good CPA and one that understands the direct selling business.
One area that is debateable is mileage. My CPA doesn't allow me to deduct my travel to and from shows because that is where I do my work. (People don't get mileage to commute to their offices). I can, however, deduct travel to meetings, errands I do for PC, etc. So be sure to check with your CPA.
lkprescott said:I define my home address as my business address so when I go to a show I'm going from my place of business to a client's place. It may depend on the CPA of course. I've done this though for all the years as a bookkeeper just keeping in mind where my business address was... so when I had an outside office, my mileage to and from my office from my house wasn't deductible but from my office to clients' was.... in this instance, my house IS my office. My commute is down the basement stairs. At least that's what I plan to tell the agent if I'm every audited.
finley1991 said:That totally makes sense.
What my CPA told me is that since shows are the primary place we earn our income, that is where we "work." I don't earn my money when I work at home.
I just go by what he says because he's the one who's names on my return along with mine...
To get a ball park figure for your taxes, you can use online tax calculators or consult a tax professional. These tools will take into account your income, deductions, and any changes in tax laws to give you an estimate of what you may owe or receive as a refund.
Estimating your taxes can help you plan and budget for any potential tax payments or refunds. It can also give you time to make any necessary adjustments, such as increasing your withholdings or making additional estimated tax payments.
You will need to have your income information, including any W-2s or 1099s, as well as information on any deductions or credits you may qualify for. You should also have an idea of any changes in your financial situation, such as a new job or major life events, that may affect your taxes.
Using your previous year's tax return can give you a good starting point for estimating your taxes, but it's important to consider any changes in your income or deductions. Tax laws and rates may also change from year to year, so it's best to use updated information when estimating your taxes.
If your estimated taxes are significantly different from your previous year's taxes, it may be a good idea to consult a tax professional. They can help you identify any potential errors or discrepancies and provide guidance on how to adjust your withholdings or make estimated tax payments.