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Author Topic: Ugh - Tax time.  (Read 1125 times)

Brad Johnson

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Ugh - Tax time.
« on: February 06, 2007, 11:25:56 AM »
Did my taxes over the weekend.  Yuck.  Hate paying them, but came out okay.  As an independant contractor I don't have any witholdings, but I do set aside a percent of every check against my taxes.  The income tax wasn't so bad - I have plenty of business deductions - but the self-employment tax was, as always, a severe pain.  Lucky I had just a smidge more set aside than I needed.  It helped take the sting out of a short January.

Oh, well.  At least I'm rid of it for another year.

Brad
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Matthew Carberry

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Re: Ugh - Tax time.
« Reply #1 on: February 06, 2007, 11:44:20 AM »
Fortunately my commissions are paid W-2 now. 

When I was actually self-employed in '04 I, um, neglected to set aside money for the self-employment tax.  That was ugly.
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Declaration Day

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Re: Ugh - Tax time.
« Reply #2 on: February 06, 2007, 12:05:50 PM »
I'm in the same boat as you, Brad.  If I come out -$100 I am happy.  If I break even, I feel like I won the lottery.
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Monkeyleg

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Re: Ugh - Tax time.
« Reply #3 on: February 06, 2007, 12:21:28 PM »
My personal tax liability should either be zero, or I'll get a few bucks back.

It's the corporate taxes that always worry me. I always think I'm going to be at zero, and then the accountant finds some liability I wasn't aware of.

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cosine

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Re: Ugh - Tax time.
« Reply #4 on: February 06, 2007, 12:30:03 PM »
I'm working on my taxes right now. I've taught a few piano lessons over the past year, and I've gotta pay that self-employment tax. This was the first time I've had to do this, and it took me a little while to wrap my brain around all that I'd have to do.

Remember I mentioned a while back that I wasn't looking forward to paying into Socialist Insecurity? Well, it looks like I am already, because if I understand properly a large portion of what I'll pay for the self-employment tax goes to to Social Security. (Sorry to you old guys out there, but I worked hard for that money and it chaps my hide to discover that I already am going to have to pay into a pyramid scheme that'll probably be defunct by the time I get old enough to collect.  angry )
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Brad Johnson

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Re: Ugh - Tax time.
« Reply #5 on: February 06, 2007, 12:32:47 PM »
Just think of self-employment tax as so-so security by another name.

Brad
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Monkeyleg

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Re: Ugh - Tax time.
« Reply #6 on: February 06, 2007, 01:06:02 PM »
Yup, the old self-employment tax.

My father's late brother ran a meat market as a sole proprietorship. My dad always complained that his brother was collecting social security after he retired, but that he never paid into SS.

I've tried and tried to explain to my dad that his brother paid SS taxes by another name.

Cosine, I'm afraid the only way you're going to see any money from your SS "contributions" is if/when the congress raises the SS tax rate.
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Jamisjockey

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Re: Ugh - Tax time.
« Reply #7 on: February 06, 2007, 01:16:11 PM »
Quote from: Brad Johnson on February 06, 2007, 10:25:56 AM
Did my taxes over the weekend.  Yuck.  Hate paying them, but came out okay.  As an independant contractor I don't have any witholdings, but I do set aside a percent of every check against my taxes.  The income tax wasn't so bad - I have plenty of business deductions - but the self-employment tax was, as always, a severe pain.  Lucky I had just a smidge more set aside than I needed.  It helped take the sting out of a short January.

Oh, well.  At least I'm rid of it for another year.

Brad

Brad,
Same boat we're in, 'cept we pay quarterly.  I use INGdirect.com for my tax account, so it earns 4.5ish% before I send it off to Uncle Sam  grin
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280plus

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Re: Ugh - Tax time.
« Reply #8 on: February 06, 2007, 02:45:46 PM »
Self employment tax - yay...  rolleyes

I pay my taxes by credit card in April and use the money throughout the year to pay down my total debt. No interest free loan to the gov for me. I actively move the debt around to the lowest interest rates available to me at any given time so I really don't pay much on interest at all.
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Perd Hapley

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Re: Ugh - Tax time.
« Reply #9 on: February 06, 2007, 03:43:45 PM »
Hey, I didn't know there was a self-employment tax.  Good thing, too.  Got to keep those entrepeneurs in check and make them pay for all the money they drain off of hard-working people.  Leeches. 
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Manedwolf

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Re: Ugh - Tax time.
« Reply #10 on: February 06, 2007, 06:57:27 PM »
Turbotax. Click, click, done.

Love that thing.
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HankB

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Re: Ugh - Tax time.
« Reply #11 on: February 07, 2007, 04:09:40 AM »
I wish I were in a business where I got paid in cash . . . sweet, anonymous, untraceable cash . . .
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TaxPhd

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Re: Ugh - Tax time.
« Reply #12 on: February 07, 2007, 10:52:19 AM »
Quote from: 280plus on February 06, 2007, 01:45:46 PM
I pay my taxes by credit card in April. . .

Do you pay the amount due, or the total?  If it is the total, how do you avoid an underpayment penalty for not paying estimates?




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