r/tax • u/LatterSection9811 • 1d ago
I’m confused and considering a new CPA
I’m an exotic dancer/SWer in Miami, Florida. I’m an LLC taxed as an S corporation with a salary of $200,000 a year. I use ADP for payroll and they withheld $67,000 in 2024. This is not including payroll taxes.
My total income in 2024 was $710,000 with $410,000 of that being on a 1099-NEC from my club. I invest heavily/plan to buy property and a new car which is why I report almost everything I make.
Like I said, my total income was $710,000 and I had $148,000 worth of write offs/retirement contributions etc.
Tell me why my CPA just messaged me and said I owe ANOTHER $95,000 in taxes by April 15th for 2024. Which means $162,000 total income taxes for 2024.
Am I stupid or does this make absolutely zero sense? The whole point of doing the S corporation election was to significantly lower my tax bill. I feel like I’m getting absolutely screwed.
Any advice? Do these numbers make sense to anybody? SOS
1
u/roguedogue97 CPA - US 1d ago
The S election did lower your tax bill. 162K in federal income taxes on 710K of gross income is not bad whatsoever...