If you are already self-employed or just launching out on your own, taxes can be one of the most intimidating items, especially if all you’ve previously known is a simply W-2 from an employer.  If you leave a cushy corporate job for self-employment, the first tax year is the trickiest.  You may have earned a larger salary and paid quite a bit in federal taxes. Or, like many you used downsizing or a severance package to fund your start up. If that is the case, it becomes even dicier because your prior year taxes will be even higher than normal and then suddenly, boom, you’re in the self-employed ranks attempting to make a go of it.  The tax man doesn’t care. Uncle Sam will hit you with stiff penalties if you are not careful.

I recently met with another CPA to get a second opinion on my own finances.  Since I fall into this dicy boat, I want to make sure that I am not sitting here shell shocked next April and most certainly want to avoid fines and penalties because I underpaid taxes.  I was very surprised at what I found out. Read the rest of this entry »