swamp
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Post by swamp on May 14, 2021 11:57:11 GMT -5
I was previously self employed. Paying my quarterly taxes was always a crap shoot. 2020 was my last year in business, and with COVID, hiring as associate to take over my practice, and winding down my business, I had absolutely no idea how this would pan out tax wise.
I was refunded $3800 federal and had to pay NYS $3100. Not bad for a wild ass guess.
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bean29
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Post by bean29 on May 14, 2021 12:09:14 GMT -5
I was previously self employed. Paying my quarterly taxes was always a crap shoot. 2020 was my last year in business, and with COVID, hiring as associate to take over my practice, and winding down my business, I had absolutely no idea how this would pan out tax wise. I was refunded $3800 federal and had to pay NYS $3100. Not bad for a wild ass guess. Congratulations on your superior planning skills! Did you sell your practice?
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swamp
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Post by swamp on May 14, 2021 12:35:32 GMT -5
No. I gave it away.
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swamp
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Post by swamp on May 14, 2021 13:44:07 GMT -5
Without getting into extensive detail, many years ago I was given the opportunity to become partner without buying in. I eventually left that firm and set up my own. However, I was able to do so because of the circumstances and financial health of that firm.
After 6 years in my own firm I moved in to another job and I wanted to pay it forward.
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swamp
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Post by swamp on May 14, 2021 13:51:59 GMT -5
Where’s the flaming about my stupid busy decision? You guys are getting soft.
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irishpad
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Post by irishpad on May 14, 2021 14:22:24 GMT -5
Where’s the flaming about my stupid busy decision? You guys are getting soft. I am just admiring your decision. Some of the Catholic social teaching stuck with you. lol
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wvugurl26
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Post by wvugurl26 on May 14, 2021 14:36:56 GMT -5
I hear it's hard to shake that Catholic guilt lol.
No flaming here. You paid it forward and gave someone else a start. It's a good thing.
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Miss Tequila
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Post by Miss Tequila on May 14, 2021 14:43:06 GMT -5
Without getting into extensive detail, many years ago I was given the opportunity to become partner without buying in. I eventually left that firm and set up my own. However, I was able to do so because of the circumstances and financial health of that firm. After 6 years in my own firm I moved in to another job and I wanted to pay it forward. I love that you paid it forward!
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tskeeter
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Post by tskeeter on May 14, 2021 15:27:54 GMT -5
Two pats on the back.
One for helping a newbie launch a business while providing some continuity for the folks on your client list.
Second for making a wise business decision. Small personal services businesses, such as your legal practice, are highly dependent on the personal relationship between the service provider and the client. As a result, when personal services businesses change hands, most of the clients leave within a year or two. This means that if a personal services business is sold, the selling price would likely be only a fraction of the preceding year revenue vs. the 3 to 4 times revenue that many other types of businesses sell for. Given the probable selling price, I suspect that finding a qualified buyer and closing a deal would be more work than it is worth.
Selling a business is difficult. It took my folks about three years to sell their quite profitable printing business. In the mean time they had to deal with potential buyers who wanted seller financing and would have run the business into the ground in six months. My favorite was the buyer who wanted control of the business, the name, the equipment, and the paper inventory, and that both my parents would continue to work in the business for six months for free. All without a nickel of down payment. I’m sure that the folks invested several days of discussions with this buyer before the buyer told them that he wanted their business, equipment, inventory, and work for free.
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Tiny
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Post by Tiny on May 14, 2021 15:49:15 GMT -5
Where’s the flaming about my stupid busy decision? You guys are getting soft. I was preoccupied admiring your idealism and adherence to your own personal moral code. Those are two characteristics most heroes have.
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swamp
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Post by swamp on May 14, 2021 16:32:38 GMT -5
Where’s the flaming about my stupid busy decision? You guys are getting soft. I am just admiring your decision. Some of the Catholic social teaching stuck with you. lol Jesus had some pretty cool things to say and the world would be a better place if we took some of his teachings to heart. Not so we won’t go to hell, but to make life more pleasant.
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minnesotapaintlady
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Post by minnesotapaintlady on May 14, 2021 17:15:30 GMT -5
I am just admiring your decision. Some of the Catholic social teaching stuck with you. lol Jesus had some pretty cool things to say and the world would be a better place if we took some of his teachings to heart. Not so we won’t go to hell, but to make life more pleasant. AMEN!
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Bob Ross
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Post by Bob Ross on May 17, 2021 12:28:33 GMT -5
Where’s the flaming about my stupid busy decision? You guys are getting soft. Pfft, giving things away is so last millenium. You should've packaged up your practice as an NFT and sold it to the highest bidder, like Jack Dorsey did with his first tweet.
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tcu2003
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Post by tcu2003 on Jun 1, 2021 13:22:45 GMT -5
Nice job on the taxes! And way cool on paying it forward with your practice - love that!
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swamp
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Post by swamp on Jun 2, 2021 10:44:28 GMT -5
So I got a surprise from NYS Tax and Finance Dept.
They said I owed $5100. Come to find out they credited my Jan 2021 quarterly payment to 2021 not 2020, despite the fact it was sent with the voucher clearly marked 4th quarter 2020 and 2020 written on the check. My $3100 payment in may just didnt get credited to the right account.
Dumbasses.
It’s now straightened out. Allegedly. We’ll see.
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thyme4change
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Post by thyme4change on Jun 2, 2021 10:54:41 GMT -5
So I got a surprise from NYS Tax and Finance Dept. They said I owed $5100. Come to find out they credited my Jan 2021 quarterly payment to 2021 not 2020, despite the fact it was sent with the voucher clearly marked 4th quarter 2020 and 2020 written on the check. My $3100 payment in may just didnt get credited to the right account. Dumbasses. It’s now straightened out. Allegedly. We’ll see. Ugh - glad to hear it is an error. My husband does our taxes and uses one of the software products. He took a picture of our W2's and the software said we owed $15k in additional taxes. He was in full panic. Turns out the software picked up the different boxes and said 401k was a bonus or something like that. It took him like an hour to find it.
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teen persuasion
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Post by teen persuasion on Jun 3, 2021 9:27:29 GMT -5
So I got a surprise from NYS Tax and Finance Dept. They said I owed $5100. Come to find out they credited my Jan 2021 quarterly payment to 2021 not 2020, despite the fact it was sent with the voucher clearly marked 4th quarter 2020 and 2020 written on the check. My $3100 payment in may just didnt get credited to the right account. Dumbasses. It’s now straightened out. Allegedly. We’ll see. They seem to be making a lot of unnecessary work for themselves. I got a surprise letter from them, too, in the fall. They decided we didn't qualify for a tuition tax credit for DS4, in 2017! Yeah, it doesn't look like we (parents) paid any tuition, because the taxable scholarship income was correctly claimed on DS4's tax return. Also, NYS has no line to label it as scholarship income (unlike federal 1040), so it just looks like earned income. I got it straightened out eventually. Then got a notice for 2018, same issue. . Thought it would be a slam dunk after the first one; nope, they rejected my appeal this time. I was either too glib/brief in my second appeal, or someone else reviewed it and never saw the first chain of letters/responses, and had a different stance. So I went into excruciating detail explaining, showing math, referencing page and line numbers on DS4's federal tax return. That seemed to do the trick (or scare them off). Interesting question is: Why now? We've claimed this credit w/o issue for DD1, DS2, DD3, 4 years each. Each of these credits was just $200, plus interest. At the time (state budget decimated by Covid expenses, prior to feds voting for state aid), it felt like NYS was scrounging for change in the couch cushions. Lots of work for auditors, zero payout.
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bookkeeper
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Post by bookkeeper on Jun 7, 2021 8:50:54 GMT -5
I filed the middle of March and have not received our refund. I don't think there is anyone left working at the IRS.
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engineerdoe
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Post by engineerdoe on Jun 7, 2021 10:51:16 GMT -5
So I got a surprise from NYS Tax and Finance Dept. They said I owed $5100. Come to find out they credited my Jan 2021 quarterly payment to 2021 not 2020, despite the fact it was sent with the voucher clearly marked 4th quarter 2020 and 2020 written on the check. My $3100 payment in may just didnt get credited to the right account. Dumbasses. It’s now straightened out. Allegedly. We’ll see. Ugh - glad to hear it is an error. My husband does our taxes and uses one of the software products. He took a picture of our W2's and the software said we owed $15k in additional taxes. He was in full panic. Turns out the software picked up the different boxes and said 401k was a bonus or something like that. It took him like an hour to find it. Thank you for reaffirming my decision to manually enter the information from my W2's. I use mobile deposit with my bank so I'm not a complete luddite but I also recall having to "fix" pdf's that were converted to word and the complete nonsense that would result from that.
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TheOtherMe
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Post by TheOtherMe on Jun 7, 2021 13:29:55 GMT -5
I filed the middle of March and have not received our refund. I don't think there is anyone left working at the IRS. They are working. Supposedly working on the unemployment refunds now after they were asked to please not file an amended return.
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