| Yes find a good CPA. But here is how you make sure you put aside enough money to pay your taxes. The worst thing in the world is running a tax return and finding out you have a very large tax bill due but unfortunately the money is all gone. Magic, it is. I have experienced this. A six figure tax bill and no cash? You're working all next year to pay last year's tax bill. You can pay estimated tax online with the IRS. Set it up for yourself so you can do that. The IRS says you must do estimated tax payments quarterly. Fuck that. I don't have the discipline to save money for three months then send a big payment. Some sort of character flaw. I pay every two weeks. Online. I estimate my net profit and divide by two. Send the money. Bang. Lots of small payments add up. Small payments are less painful. Don't worry. The IRS will keep track of all the payments you make. Periodically I check my guesses against reality. I do monthly and quarterly financial reports and see if my guess x 50% is too high or too low. Adjust as needed. The important thing is to get close to the actual tax due. You do not have to be perfect. If you owe $75,000 in tax and you have deposited $60,000 already, that final lump is easier to handle. TL;DR - Frequent small deposits with intermittent course corrections. Aim for getting close to your actual tax bill, whatever your definition of "close" is. Disclaimer: I'm a tax lawyer who has really struggled with this personally over the years. |