Ok, tax time around. LLC S-corp. My wife has her W2 and I do have mine. The profit is $100k. My tax accountant says I have to pay our tax bracket on this profit. In our case 30%. So $30k in taxes.
I get that I have to pay taxes but what is the best way to deal with this? I can’t predict the year end profit so I don’t want to pay quarterly.
How do you deal with this?
As I wrote we pay ourselves W2 income which brings us in the 24% bracket. The $100k are on top of that (net income after wages are paid) which brings us in the 32% bracket. So the effective tax rate is 30% on the $100k