TAXES!

[JaneDoe]

Re: TAXES!

When I used to work, I remember how vocal self-employed people were about their tax burden. I tended to dismiss it as "just another person complaining about his or her taxes". Now that Dh is self-employed, I have come to better understand what they were talking about.

My understanding of why the self-employed are hit so hard is that they are both the "employer" and the "employee". Thus, they must pay both the employer and the employee share of the fica tax. In real numbers, paying both shares added roughly $17,000 (I think) to what we would have otherwise owed if Dh was an employee.

I think the only way to fix the problem is to convert to a national flat tax system, which I don't think will happen in my lifetime.

Re: TAXES!

That is what I did -- and I assume what all self-employed have to do -- I paid my share of FICA and the employer's since I was employing myself. I think the tax rate is 15.3%. That credit part always confused me and I never felt like it completely credited me!

[GrayMatterWife]

Re: TAXES!

Now, where is that number for the White House?

1-800-hope-change

Re: TAXES!

Phew...done and not as bad as I anticipated. I had a nice chat with the accountant and feel much cleared (and calmer) about the quarterly payments, what we should do, and what DH (AS A PARTNER) should request around this to cover the payments.

Re: TAXES!

Now, where is that number for the White House?

1-800-hope-change

http://www.whitehouse.gov/contact/

[Sheherezade]

Re: TAXES!

Thanks Jenn. I have to say that the addition of email as a means to contact your congressional rep and President has turned me into a letter-writing old bitty. I think I've submitted 5-10 letters to Congress in the last few months.

I have my own wacky proposal that I'm thinking of putting through the WH citizen forums. They *claim* that any really good idea that passes lower level staffers will be kicked upstairs. Of course, mine is a really good idea that should go di-rect-ly to Mr. President for an action plan. If anything ever comes of it, I will have to brag here.

Can you imagine being the staffer that gets to read, sort and file the email? Egad. That's a "paying your dues" job.

[DCJenn]

Re: TAXES!

I think with the right kind of beer and snack foods, it could be a GREAT job. Maybe we should send Julia over there to find out for us. She can do a lateral transfer from State.

Jenn

[Sheherezade]

Re: TAXES!

With the right kind of beer and snack food, any job is a great job!

[oceanchild]

Re: TAXES!

I think with the right kind of beer and snack foods, it could be a GREAT job. Maybe we should send Julia over there to find out for us. She can do a lateral transfer from State.

Jenn

Hahaha, just tell me where to send over my resume.

I actually applied for a lot of "legislative correspondent" jobs a couple years ago - that's the House of Representatives' official title for mail opener. Incredibly competitive. Didn't get any offers.

[ladymoreta]

Re: TAXES!

Bleh, just got the grand results - we get $32 back.

But the good news is that since we bought a house last year, we qualify for a $7500 interest-free loan (First time home buyer's credit). We start paying it back $500 a year, starting in 2011. If we sell our house before it's paid off, and we make a profit, the balance is taken out of the profit. If we sell the house for a loss, we don't have to pay it back. I really dislike taking on even more debt, but it'll be nice having the extra cash over the next few years. FYI - if you buy your first house this year, it will be $8000, and you never have to pay it back.

[Bittersweet]

Re: TAXES!

Thanks to DH’s consulting, it likes like we'll owe approximately $1,000. Not a ton, but it sure would have been nice to have that extra money for moving expenses.