To my fellow new partners- just got my tax bill- and it’s twice what I expected! Tips to deal with?

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Ask other partners for their tax guy/gal!

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Do you have a line of credit you can borrow from to pay your taxes? Assuming you are paying quarterly estimated payments?

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Yeah, I get that. I opened a line of credit to have just in case my quarterly taxes were higher than expected. I pay it off when I get my year end distribution. I’ve had to do it once since I became partner 4 years ago. But it’s a huge weight off my shoulders to know that I have the line available if needed.

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I am not exactly sure how it works, but some of my former K-1 colleagues (seems that is what you are given estimated taxes) swore to saving money by incorporating an llc and receiving payments through it. I didn’t investigate much because i was in the process of leaving that firm when i was told about that approach. Getting a tax accountant might be your best bet. I hated having to file taxes in NY and CA when i rarely even visit those states and had no business in them!

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Vote for lower taxes! Lol

I don’t even know where to begin with all of that, Lawyer 1.

“Voting republican as a person of color is like a chicken voting for the farm.” Not the case. If you want us to remain a prosperous country, the answer for sure isn’t voting blue.

“High taxes are the prerequisite for living in any first world country.” Also not the case. Discretionary spending is being wasted on a grand scale. And at the state level, why aren’t NYC and Cali paradise on earth then?

“Lobby your politicians to put tax money back into your communities and not useless wars abroad.” That’s just code for more wasted money. Yeah, no useless wars, but not willfully blinding ourselves to clear and present dangers (Iran and China).

Usually the firm will make a tax distribution to help out. You could talk to your finance team. Are you setting aside 55% of each draw/distribution?

Was only doing 40%- have no upped it. Firm tax distribution pretty limited.

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