Tax 101 for Pet Business Professionals

by Kristin Morrison on April 15, 2009

in Dog Sitting Business,dog walking business,Pet Business,Pet Sitting Business,Taxes

3444240913_05d31f57c2_mYep. It’s that day again. April 15. A day some Americans love and some Americans really don’t like. Me? I’m feeling good. This is the 3rd year in a row that I have (thankfully) not had to pay taxes but have actually gotten money back from our dear Uncle Sam.

It’s been 15 years now that I’ve owned my pet sitting and dog walking business and for the first few of those years I would get walloped with a huge tax bill. Why you ask? It’s simple: I wasn’t paying my quarterly taxes. So April 15 would come and I would be paying for the prior years taxes which would make it nearly impossible to make payments for the current year. It was very stressful.

One year I just HAD it. I decided: I’m not going to do this again. I’m going to work my butt off and make those estimated payments.  I set up a payment plan with the IRS, which was a big mistake: compound interest, penalties, late fees—don’t do it, go to http://www.creditcards.com/ and get a 0% credit card to put your tax bill on that instead.

Anyway, long story short I finally got current on my taxes a few years ago and that felt so good. I really recommend it.  If you are having a hard time making your quarterly payments to the IRS here’s a trick: pay them monthly instead. Split that quarterly payment into thirds and pay that amount. That way the money will be safe in the IRS’s hands instead of your easily accessible bank account when you get a yearning to take that trip to Hawaii you so desperately think you need.

Don’t get me wrong…I’m all about having fun. I love Hawaii. But I love the feeling of being current with the IRS more. And if I’m current with them then I’m more apt to be able to have it all.

So…have you paid your Q1 for 2009 today?

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