Apr 2, 2008

How to Afford My Quarterly Taxes

I assume that I'm going to owe $6132 in quarterly taxes (state and federal) in... 14 days.

(AHH!)

I just transfered an extra $1000 into my ING for Taxes account, which now adds up to $5125.56

So I'm short $1006.

That means budgeting this month needs to be extra, extra tight. And I might have to dip into my liquid CD to pay my estimated quarterly tax.

----

April "Spending" Money $2410


Fixed Costs = $1422.28
--------------
$71.33 -- Cable Bill
$129 -- Health Insurance
$87.33 -- Car Insurance
$57.62 -- Phone Bill
$1050 -- Rent
$27 -- Gym Bill

Credit Card Debt: $882
to pay this month $500
---------------------------------

$1922.28

----------

$487.72 left

Food? Taxes? Gas?

--------

The Good News...

Still Owed for this month: $1325

($400 for marketing copy
$525 for marketing article
$400 reimbursement)
[[+487.72]]

(TOTAL: $1752.72)

If I get paid all of this in time...

$1300 to taxes
$200 to food
$100 to Roth IRA
$152.72 Stays in Checking

--------------------------------------


Why am I so short? I shouldn't be this short, but it will take me until the end of April to earn all the money I need to pay for my Jan - April estimated taxes. I could just pay less than I'm supposed to and hope that it all works out in the end. This isn't entirely a stupid thing to do because I think based on last year's taxes I could undershoot what I'm going to have to pay this year and still be penalty free. But I'd rather keep on top of things.

Also, none of this takes into consideration the fact that I have to pay to deal with 2007 taxes.

What have I done, oh what have I done????



2 comments:

Rachel @ Master Your Cards said...

All I can say is good luck with this. I hope that you manage to be frugal enough to have enough money to pay your tax bill.

That Saddity Chic said...

Did an accountant do your taxes? Did you do include all of your deductions? My accountant called me 3 days ago and informed me that because I had so many deductions that I owe the IRS nothing. I'd pay the $300 for a accountant just to make sure.

Post a Comment