Tax time.what to do.

[MAIorBust]

I am prepared for the flack I will receive for this post but I need some help. I am a trainee right now and my boss did not take any taxes out of my paychecks for the first six months I was working here. My mother did all my tax stuff up to now so I have no idea what to do. I know I owe money to the IRS . What information do I need to take to a CPA so he/she can do their job? Sorry for being young, dumb and a :new_newbie:!

 

[Lawrence R.]

Before you make any big mistakes, just go see a tax professional. 400 dollars is a small price to pay for peice of mind.

Isn't that what we say all the time?

 

[Hall McClenahan]

If you are in an Non-US State it will be hard for us to help you out.

However, take any receipts you have, take your experience log, any split-fee documents, mileage log, and a note pad and pen. Your CPA will give you a list of other items or other needs.

Enjoy the experience, if you are smart you will get used to doing it quarterly.

 

[Terrel L. Shields]

You likely can get in the position of underreporting your expenses. You need to verify your mileage. I keep one of those freebie pocket calenders they give at the bank in each vehicle and document each mile I drive for business. to the office supply, to inspect, to the supervisors, to the courthouse. Those miles rack up big time against income. All paper, computer, books, licenses, classes, CE, programs, etc. are deductable. etc. etc.
Document it all. Your gross income is what you were paid. The expenses count against it. You may find your tax burden isn't too great but you will pay penalty for not 'doing' quarterly payments. The tax penalty applies only to that part equal to last year's taxable income. Your worst problem will be that you will owe tax on April 15. That same day you have to pay your first quarterly payment for 2008. Don't miss it.
Keep track of everything and make a habit. "balance" those books every Friday afternoon.

I believe in Friday afternoons. Time to turn off the answer machine, do the books (15 min or so), catch up with your periodicals and reading material. study hall so to speak. Makes you a better appraiser faster.

 

[VolcanoLvr]

If you are not an employee, your employer should issue you a 1099 Form to report $ paid to you.

Very important: SAVE a portion of every $$ you get paid in a savings account, and do not spend it for anything except your tax obligation, classes, memberships, etc. I put 25% in mine, last year was 30% but I determined it was higher than necessary. If you don't SAVE now, you will have to SPEND later, and may even have to take out a loan to pay your tax obligation. That's not smart! Learn to live and play on the net $, and you won't stress about taxes!

As Terrel says, keep track of all business expenses and mileage. I use a monthly sheet for mileage to show the date, mileage in/out, file # and location of each assignment...and travel to classes, etc. IRS requires a written document for verification.

Keep a file folder just for your business. All receipts go in it as acquired. At tax time, sort it all out...mileage in this pile, tallied; cell phone bill in this pile, supply receipts in that pile, tallied; etc., etc. That's what your CPA or accountant will appreciate, and will probably save you money on their fee.