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Primer: Personal Income Taxes (sole proprietorships, partnerships) Connecticut

If you operate a sole proprietorship or partnership, you must pay city, state, and federal income tax just like anyone else and you are responsible for paying it directly to the government. Federal income taxes must be paid in estimated quarterly payments. These payments are due in four installments on: April 15, June 15, September 15, and January 15. These federal taxes will cover your self-employment tax which includes social security and Medicare. This self employment tax makes working for yourself expensive because when you had a boss, your employer paid for half your self-employment tax and you paid the other tax. You will now be responsible for all of it, although a portion of it is deductible.

Local Companies

Esmerce Bookkeeping Services
914-426-5140
15 Royal Road
Danbury, CT

Ceridian
(781) 213-8476
30 Batterson Park Road, 100
Farmington, CT

Liberty Tax Service
(860) 242-9500
1023 Blue Hills Avenue
Bloomfield, CT

Swan Place Productions
(860) 231-0555
12 Northcliff Dr
West Hartford, CT

Future Planning Consultants Inc
(203) 453-5057
21 Copper Hill Dr
Guilford, CT

Icare Management
(860) 570-2140
25 Lorraine St
Hartford, CT

Northeast Resource Group
(860) 526-2222
17 River St
Deep River, CT

Flath & Associates Consulting
(860) 443-2020
New London, CT

Wetzel & Company Inc
(203) 846-2504
147 E Rocks Rd
Norwalk, CT

Perkins Williamson Associates Inc
(203) 316-0699
1887 Summer St
Stamford, CT

If your state has an income tax, you must pay it quarterly also. Cities may have their own tax rules.

Generally speaking, you must pay estimated quarterly installments if you expect to owe at least $500 in tax for a given year. The laws governing how much tax you must submit during the year require that you either pay 90 percent of the tax you will owe by the end of the year (to avoid penalties), or pay 100 percent of last year's tax (110% if your income exceeds $150K). This means that you can submit a minimum amount of tax during the year if you want to hold on to some of your money. However, this plan only works if you are able to leave the money intended for taxes alone. Too many people spend the money that they put aside then run into trouble at tax time. If you fail to make your payments on schedule and within these guidelines, you will be liable for penalties -- plus interest on the money you owe.

Your tax preparer should provide you with forms and envelopes for making your estimated payments, or you can order these forms directly from the IRS by calling 800-829-3676.

Featured Local Company

Esmerce Bookkeeping Services

914-426-5140
15 Royal Road
Danbury, CT

Read more about Primer: Personal Income Taxes (sole proprietorships, partnerships)

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- Cash vs. Accrual Accounting Connecticut

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- Business Organization Connecticut
- Overview: Corporations Connecticut
- Getting a Tax ID Number Connecticut
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- Primer: Corporate Income Taxes Connecticut
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- Basics of a General Partnership Connecticut
- Sole Proprietorship Basics Connecticut
- S Corporation Facts Connecticut

Related Local Events

Fall Seminar Series - How to Prepare for Year End Tax Reporting
Dates: 11/18/2009 - 11/18/2009
Location: East Granby Public Library
East Granby, CT
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