2023 Taxes

Welcome Back Folks, 😀

Amy here, just typing away at the keyboard at the good ol’ library because my internet hotspot died lol… 

On the bright side, I really do like coming to a place where I can focus & make a whole day out of it. I very much like to get a hot chocolate or bring my wildberry tea from home and make it a whole vibe sesh when I’m here.

Anywho, today’s blog post is about a topic that is such great fun! Taxes! This is my second year of filing business tax returns for my current company and it’s kind of super cool. 

In 2023, I was paid via an owner’s draw which means that my payments came directly from the company’s profits & I did not pay quarterly self-employment taxes. Instead, I’m paying my taxes now, when I file my personal tax return at the end of the year. Additionally, now that I’m filing my personal tax return for 2023, I am being given quarterly estimated tax payments that I can make in 2024 which is pretty helpful…If I were to continue taking owner’s draws, this would be the way to go, absolutely! 

However, in 2025, my Accountant advised me to pay myself via W-2 instead because your salary can be counted as an expense. Important Disclaimer: I am not an Accountant & the information shared here in this blog post is just me sharing my personal experience with you all. Since I am the one who processes the payroll with our payroll company, I have found this way to be so much easier & am delighted to see how this year goes, yay! 

I know most people probably aren’t too excited about tax season, but I feel elated & excited that I get to pay some taxes this year, what an amazing journey! 

Questions For You To Ponder Next: 

• Is your business making enough money for you to collect a salary and/or compensation yet? 

• If so, have you spoken to an Accountant to make sure your personal and professional taxes are in order?

• Are you aware of what the tax deadlines are? 

Thanks so much for stopping by & I hope you have a wonderful day! Happy Tax Season Ya’ll 🙂