It’s that time again to pay your quarterly taxes if you’re self employed. I made my payment today and had to readjust my payment since my income has unexpectedly increased. My first quarterly payment was big, my second one was small, and this third one was big again. I read that the IRS may issue a penalty because my 2nd quarterly payment was so small. I think a penalty is unfair because it’s supposed to be estimated taxes. If you’re supposed to be accurate to a certain percentage, then it’s not really an estimate anymore, but more like a precise mathematical calculation correct within a range. Self employment tax is killing me, I got to learn how to form an LLC and pay myself a wage to cut that tax out. It’s too late this year but maybe in ‘08 I’ll get started on that.
On another note, I’m planning on buying my first home in a few months, so I’m going to be receiving a big tax deduction for that in my 2008 taxes. I will actually be paying less in taxes next year even though I’m going to be earning more.
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