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Pampered Chef: Worried about taxes

  1. ponvn591

    ponvn591 Novice Member

    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!
    Aug 13, 2009
  2. Sheila

    Sheila Legend Member Gold Member

    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. ;)
    Aug 13, 2009
  3. chefann

    chefann Legend Member Gold Member

    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.
    Aug 13, 2009
  4. kdangel518

    kdangel518 Advanced Member Gold Member

    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.
    Aug 13, 2009
  5. Melissa78

    Melissa78 Veteran Member Gold Member

    This all sounds like the same thing I answered on the other day.
    Aug 13, 2009
  6. PamperedchefDaly

    PamperedchefDaly Member Gold Member

    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.
  7. ponvn591

    ponvn591 Novice Member

    Thank you guys for all your input! It is greatly appreciated. I will sure have to save my receipts. Thanks again!
    Aug 13, 2009
  8. doughmama

    doughmama Advanced Member Silver Member

    you should also pay estimated taxes every 1/4 so you don't have to pay one lump sum at the end.
    Aug 13, 2009
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