My wife has a small single person LLC (got rid of the S-Corp!) and we will be filing quarterly taxes for the first time this week.
I want to make sure I understand how to calculate them:
- Take receipts in
- subtract Materials and expenses (like mileage)
- subtract 1/4 of yearly equipment depreciation (she's using a 7-year depreciation schedule)
-----> this is your profit and what you need to pay taxes on.
Multiply by 15.3% to get Self Employment tax
Now how do I calculate the income tax? Deduct SE tax from profits, and apply what %? Our marginal tax bracket.after taking my salary into account?
I want to make sure I understand how to calculate them:
- Take receipts in
- subtract Materials and expenses (like mileage)
- subtract 1/4 of yearly equipment depreciation (she's using a 7-year depreciation schedule)
-----> this is your profit and what you need to pay taxes on.
Multiply by 15.3% to get Self Employment tax
Now how do I calculate the income tax? Deduct SE tax from profits, and apply what %? Our marginal tax bracket.after taking my salary into account?
Statistics: Posted by Raspberry-503 — Fri Jun 07, 2024 4:54 pm — Replies 0 — Views 72