I have a question. My wife started dancing last July and in preperation for doing my taxes this year have read quite a bit on this site. I also have been working for my self for 2 years now and for 2003 had H&R do my taxes. And I have a question. BTW live in FL no state income taxes.
Niether my wife nor I have paid estimated quarterly taxes. I did not even know about them until tonight. I never had the money or the time to consult a CPA. H&R never mentioned it during the 2003 tax return. I assumed that you just reported your income at the end of the year and paid your taxes and went on your merry way...
1. Since I have not paid quarterly estimated taxes does this raise the chance of an audit?
2. Do I have to pay more at the end of the year (penaties or such) for not paying taxes quarterly?
3. I want to do things right, how should I go about starting to do things the right way now. Please note that paying large bill before June is not going to be possible. Wife is having BA surgery 4/1 and taking 1 month off.
4. I don't want to put my wifes profession as a stripper on a tax return. To claim deductions on house fee's milage etc. what "Title" should she use?
5. Does the IRS automatically assume that Dancers Lie on thier tax returns? I was thinking that we should set aside a certain % of her income in cash to pay the IRS if they should aduit. Sort of "You reported 40k but we think you made more so here is your bill.." And having the cash to just pay it. Or am I too paranoid? We want to be legit as we are trying to pay off debts and put money down for a house.
Thanks for any advice. It is nice to see the girls on here with a good head on her shoulders. Most of the girls my wife works with simply don't. So kuddo's to ya'll.
-Dancers Hubby


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