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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16575
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Accounting question for scorp

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Accounting question for scorp

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

What is your question?

Customer:

I'm trying to figure out a rough figure for tax liability for end of year. I am an employee of a company and have an Scorp on the side ..

Customer:

Here's the data:


Scorp Revenue: $68,000
Scorp Salary (I was told this is the minium an officer can take): $12,000
Scorp expenses: $23,000
W2 wages from a full time job: $ 102,000
Also, have no dependents, no mortgage, no tax deductions besides the business.

Customer:

Can you give me a rough amount I would ultimately owe the IRS at end of year?

MyVirtualCPA :

Does the expense include the salary

Customer:

I don't think so ..they are the Schedule K expenses

MyVirtualCPA :

Okay

MyVirtualCPA :

Let me get a rough estimate for you

Customer:

I mean form 4562 expenses, not Schedule K

MyVirtualCPA :

okay

Customer:

On the 1120 S, the expenses are listed as "Other deductions attach statement)

MyVirtualCPA :

Ok thanks for that information

Customer:

Also, I live in Virginia ...can you include state/local taxes (just a rough figure).

MyVirtualCPA :

I am showing your federal tax to be about $32,651

Customer:

does that include state/local?

MyVirtualCPA :

No that's just the IRS

MyVirtualCPA :

I have to find a VA calculator

Customer:

State and local would probably be a $500 more per month, correct?

MyVirtualCPA :

A rough estimate is about $8,195

MyVirtualCPA :

based on 147,000 of income

Customer:

okay, that 's what I needed to know...thank you

MyVirtualCPA :

You're welcome. IF you would, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

MyVirtualCPA :

The rating feature is located at the bottom of your screen

Megan C and other Tax Specialists are ready to help you
Lynn,

Thanks for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.
Customer: replied 3 years ago.

Quick question..


 


If I contributed $12,000 to a Simple IRA, how much would that reduce my taxes each year?


 

Thanks Lynn for your follow up. You would reduce your tax by approximately $3,360 by contributing that amount to a SIMPLE.

Please let me know if you need anything additional. If not, please rate this response as "excellent" so that I may receive credit for assisting you today.
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