Tax Money to Withold

[indiana260]

My wife and I are entering a new tax bracket this year... Will we be able to pay less money on taxes if we write ourselves a weekly check from our business?

My memory is fuzzy on this but here is an idea...

You should speak to someone about setting up an "owner k". I may have the name wrong but this is how I remember it.
It is basically a SEP/401k but it allows higher limits. When our advisor explained it to us he said at the end of the year you could pay yourself a profit sharing check up to 50k. It could have saved us about 10k in taxes. The downside is, you have to pay an annual fee if around$800 to have a cpa oversee that everything is correct.

It's been over a year since I talked with our guy about this but it really seemed like a good idea if you want to put more into retirement then the SEP allows. There were some catches, like the annual fee for the cpa and the fact that we are more comfortable maxing out the sep, that deterred us from.doing it.

Let me know if you want more info and I will dig it out

 

[Josh]

My wife and I are entering a new tax bracket this year... Will we be able to pay less money on taxes if we write ourselves a weekly check from our business?

The only reason I strongly recommend it is to stay organized. I was told there wasn't much of an advantage and that it wasn't worth the hassle.

Also, congratulations!