Tips for Managing Taxes as a College Student: Pampered Chef Income

[ponvn591]

Okay so I am worried. Pampered Chef doesn't take taxes out our checks so we gonna have to pay that back at the end of the year. I am just scared that i will owe alot and I'm wondering if i should be putting aside money from each check. I am a college student who doesn't have much money and this is my only income so if i will owe a good bit of money i need to be prepared! Help!

 

[Sheila]

Are you the same one that just asked this same question a couple of days ago? If not, go with the same advice she was given. Put 30%-33% aside in a savings account. If you don't need it for taxes, you have a little savings account for Kit Enhancement Month in April.

 

[chefann]

You're also going to have a lot of things that you can deduct, which will reduce the amount that you owe. Mileage, samples, postage, supplies... they all add up. If you're still concerned, then open a separate account and save money in there for the taxes.

 

[kdangel518]

There are so many things that you can deduct, that I doubt you will end up owing $$ at the end of the year unless you are getting lots of bonuses and overrides.

In addition to typical business expenses- mileage, samples, postage, supplies, that chefann mentioned, don't forget the cost of your kit, you can deduct groceries any time you make a PC recipe or practice a PC recipe for a show or bring the ingredients for your host. You can deduct healthcare expenses since you are self-employed and not receiving health insurance benefits through PC. You can deduct part of your phone bill and internet access since you use that for your biz.

I would speak with an accountant or someone else in your cluster who's experienced at this.

 

[Melissa78]

This all sounds like the same thing I answered on the other day.

 

[PamperedchefDaly]

I had the same worries when I started PC last year. So, each month, I took 10% out of my commission check and put it in a separate account. I didn't have to use it when it was tax time. Like other posters said, with all the deductions we have, it's unlikely that you'll owe money.

 

[ponvn591]

Thank you guys for all your input! It is greatly appreciated. I will sure have to save my receipts. Thanks again!

 

[doughmama]

you should also pay estimated taxes every 1/4 so you don't have to pay one lump sum at the end.