Owe, Owe


» From: Temple, TX

Dear TaxMama:

Is there a site to download, or software to buy that will help me manage and figure my taxes as an independent contractor during the year so I know what I owe quarterly or otherwise?

Gino

Dear Gino,

Glad to see you wanting to take care of your accounting.

First of all, you'll need to figure out your profits for each period. So, you'll need accounting software.

Depending on whether you're comfortable with somewhat complex, full-bodied programs, or just want it simple and sweet, here are two alternatives.
  • QuickBooks Pro 2002 http://taxmama.com/QuickBooks. This will let you write your checks, invoice your clients, get profit and loss reports in an instant.

  • If you want something much more basic and less than half the price of QuickBooks - try the Internet Tax Helper http://www.internettaxhelper.com/g.o/taxmama It's a fundamental bookkeeping program. Very simple to use. You can't create checks or invoices. But you can get a report for any period you need.
And let me tell you, for estimated tax purposes, those time frames are really odd. As far as IRS is concerned, some quarters have two months in them, others 4.

Once you have your numbers, read this article about making estimated tax payments .... and you're all set. (See TaxMama's Article, Estimated Payments - Hate Them? But Pay them!).

You can make the quarterly payments online

So, will this get you started?

Best wishes,

Eva Rosenberg
Your TaxMama

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