First, I’d get a new accountant. If you have 100k in profit you don’t just “pay 30%”. You would pay 10% on the first $22,000 then you would pay 12% on $67,450 and then you would pay 22% on the remaining amount. There isn’t even a 30% tax bracket to begin with, it goes from 24% to 32%. (the above numbers are assuming you are filing jointly with your wife)
2nd, you can take a lot of that money and use it as “business expenses”, did you and your wife go out to eat and discuss work at any point? deductible. Did you purchase any toilet paper? deductible, did you purchase any coffee? deductible etc.
Last, I don’t know if you have kids or not, but there are deductions you can take, child tax credits etc.
If that $100,000 was actually pure profit you, and you add in the married deduction of $27,700. It would leave you a taxable amount $72,300. Now out of that your total taxes for the year should be roughly $11,361
So yeah, I’d recommend finding someone who knows what the hell they are doing.
First, I’d get a new accountant. If you have 100k in profit you don’t just “pay 30%”. You would pay 10% on the first $22,000 then you would pay 12% on $67,450 and then you would pay 22% on the remaining amount. There isn’t even a 30% tax bracket to begin with, it goes from 24% to 32%. (the above numbers are assuming you are filing jointly with your wife)
2nd, you can take a lot of that money and use it as “business expenses”, did you and your wife go out to eat and discuss work at any point? deductible. Did you purchase any toilet paper? deductible, did you purchase any coffee? deductible etc.
Last, I don’t know if you have kids or not, but there are deductions you can take, child tax credits etc.
If that $100,000 was actually pure profit you, and you add in the married deduction of $27,700. It would leave you a taxable amount $72,300. Now out of that your total taxes for the year should be roughly $11,361
So yeah, I’d recommend finding someone who knows what the hell they are doing.