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Does anyone know anything about federal taxes?
15 years ago
General
Usually, I'm very good at filing my own taxes, and my husbands.
This year is a little different, because I am now considered an independent contractor (or self-employed according to Turbo-Tax) as a dog groomer.
Last year, I made $13,000 total. No taxes were taken out. That's gross income.
Dago, my husband, made 22,000 with all of the usual witholdings. He works for a nonprofit government subsidized facility.
With his income alone, we get 1500 back federally, and 200 from state.
When adding mine in, we have to PAY over 1500 federal and like, 35 for state.
WHY?!
Why does the government hate me?
No, seriously though,
Why do they want me to pay over a months salary to them, when we're living in San Diego, paying some of the highest rent around? I mean, that is RENT. It's why I work, so we can pay rent. I can't afford that!!
Does anyone know why this is so high? It seems exorbitant to me, that my little dog grooming business can be taxed so severely...
Maybe if I just said it was a hobby... I only work 3-4 days a week... for like, 4-5 hours a day...
Or just left it off all together... would my "boss" get in trouble for that?
I highly doubt the federal government is gonna come after me for $1000 do you? There's like, drug dealers and white collar criminals to worry about... who rip off the state a lot more than little ol' me...
And isn't there some kind of newly-wed credit? Like, if you got married in the last year?
Ugh... taxes suck when you have to pay, but awesome when you get a return... Think I'm gonna have to play the tax-evasion card and hope for the best, cause we'd be living on the street if we had to pay that...
This year is a little different, because I am now considered an independent contractor (or self-employed according to Turbo-Tax) as a dog groomer.
Last year, I made $13,000 total. No taxes were taken out. That's gross income.
Dago, my husband, made 22,000 with all of the usual witholdings. He works for a nonprofit government subsidized facility.
With his income alone, we get 1500 back federally, and 200 from state.
When adding mine in, we have to PAY over 1500 federal and like, 35 for state.
WHY?!
Why does the government hate me?
No, seriously though,
Why do they want me to pay over a months salary to them, when we're living in San Diego, paying some of the highest rent around? I mean, that is RENT. It's why I work, so we can pay rent. I can't afford that!!
Does anyone know why this is so high? It seems exorbitant to me, that my little dog grooming business can be taxed so severely...
Maybe if I just said it was a hobby... I only work 3-4 days a week... for like, 4-5 hours a day...
Or just left it off all together... would my "boss" get in trouble for that?
I highly doubt the federal government is gonna come after me for $1000 do you? There's like, drug dealers and white collar criminals to worry about... who rip off the state a lot more than little ol' me...
And isn't there some kind of newly-wed credit? Like, if you got married in the last year?
Ugh... taxes suck when you have to pay, but awesome when you get a return... Think I'm gonna have to play the tax-evasion card and hope for the best, cause we'd be living on the street if we had to pay that...
But that means you aren't having taxes withheld. So you get all of your money and the goverment none of their share. You can sometimes hold off on paying for things.. For a while at least.. But If there was a newly wed one.. I wish I could get my share.. but it just means you and your hubby must flie together..
So you can pull the not pay card maybe once... at best....
Being self employed, it is best to keep a checking account specific to the business. From there, you'll need to keep track of ALL expenses and you'll need to pay yourself from it. Not sure if it would be the same there, but we have to pay 941 taxes every quarter, WH-1, ST101 and a whole slew of other things.
I would highly recommend finding an accounting service that could help you set up a system to properly get things going. That way come next year, you will be ready. I'm not sure what else can be done for you at this point, but said accounting service might be able to help you with that as well.
Best cut the arm off and walk away from this before they ask for the leg too.
Also on an aside, there has been interesting tax things done the last two year to help get us all "back on our feet" but they get it back at tax time. That is another rant. We were in a similar thing this year, with just my income... we were getting a rebate... with Lisa's contribution we have to pay for the first time.
Another couple I know has to pay over 3000 this year! This is not a good year in regards to taxes. I have a rant next time we chat if you want to hear.
Heh though if you have a kid you will get a bit of a rebate ;) that or buy a house... but for us that isn't going to happen... and I don't thing y'all are going to have puppies yet.
See, when you're working for someone, they're required to kick in half of that out of their pockets, and you're supposed to kick in half out of yours. If you work for yourself, you're responsible for the whole shebang.
However, the IRS is pretty good about working out payment plans, so you don't have to shell out the whole lump sum at once.
Check around; in a lot of places, there are low-cost and no-cost tax advisors who can help you figure it out. :)
One of the only useful things I learned at AI.