GAH! TAXES! Back to Baby Step 3. :(

So – I apparently withheld too little for taxes and I owe a ton more than I thought I did. $10,860 more. Ouch. (I’m self-employed so I make quarterly tax payments)

So that $10,860 needed from that emergency fund to bring it down to $19,174.91. :( Time to build it back up to $30k.

So…. back to Baby Step 3.

Back to being gazelle intense.

{ 2 comments… add one }

  • Mark Butler March 29, 2013, 6:10 am

    Don’t you just love how the tax code treats self-employed people? “Thanks for providing yourself a job and adding value to the economy. As a thank you, we’d like to stick you with excessive self-employment taxes!”

    At least you’ve got yourself set up to not be completely ruined by the unexpected expense!

  • cdub March 29, 2013, 7:48 am

    Yes – it’s grand. Oh well. I just need to plan better this year.

    What’s everyone else’s approach to siphoning money away for estimated taxes? I was apparently doing too little.

    My accountant suggested 35% then 75% of that for federal and 25% of that for state and then to adjust as needed.

    That’s probably too much but I’d rather do that than take money out of my E-Fund next year.

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