A big damn check...
03-27-2010, 10:51 AM
#10
damn joe, once in my life i've written a single check for more than that, when i bought my house. It gave me a sick feeling. this year i owed the govt $217, which i honestly don't even understand, but it gave me an angry feeling. after seeing your check i'm not even sure what to feel
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03-27-2010, 11:09 AM
#12
I estimate joe made somewhere in the neighborhood of 250k last year! I thought I had a good year in 08' paying 8500 =P
My friend's consulting business did great in 08' and he cut a 250k tax check.
Thanks Joe, i'm really excited to finally be able to afford health care for myself.
My friend's consulting business did great in 08' and he cut a 250k tax check.
Thanks Joe, i'm really excited to finally be able to afford health care for myself.
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03-27-2010, 12:37 PM
#16
35k in Federal tax and estimates of 250-500k income?
**** US taxes are cheap.
Fed tax here is:
15% on the first $40,970 of taxable income, +
22% on the next $40,971 of taxable income (on the portion of taxable income between $40,970 and $81,941), +
26% on the next $45,080 of taxable income (on the portion of taxable income between $81,941 and $127,021), +
29% of taxable income over $127,021.
Provincial:
Ontario 5.05% on the first $37,106 of taxable income, +
9.15% on the next $37,108, +
11.16% on the amount over $74,214
That is JUST income tax.
**** US taxes are cheap.
Fed tax here is:
15% on the first $40,970 of taxable income, +
22% on the next $40,971 of taxable income (on the portion of taxable income between $40,970 and $81,941), +
26% on the next $45,080 of taxable income (on the portion of taxable income between $81,941 and $127,021), +
29% of taxable income over $127,021.
Provincial:
Ontario 5.05% on the first $37,106 of taxable income, +
9.15% on the next $37,108, +
11.16% on the amount over $74,214
That is JUST income tax.
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03-27-2010, 12:51 PM
#17
Boost Pope
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I've come to learn that one of the ways in which the Fed has decided not to nurture and stimulate the growth of small businesses is by socking us with a bit of a double-whammy. In addition to the regular 28% income tax, we also get to pay the Self-Employment Tax, which is 12.4% of all earnings up to $106,800 plus 2.9% of all earnings with no upper cap. And, of course, this tax is figured on gross- no deductions. The only olive branch is that you do get is a 7.65% write-down on your gross, and the result of that calculation is used as the basis for the tax. But, you only get to claim half of the amount you pay in SE tax as a deduction on your regular 1040 income tax. (Normally, things like state and local taxes are 100% deductible.)
Essentially, I get to pay for Medicare and SS at double the rate that a regular salaried employee would. So all told, my combined tax rate is about 43%, not counting deductions & write-downs, and the effective net tax rate works out to about 31%.
Bleh.
Originally Posted by shuiend
That check is for more then I make in a year. I really need to graduate from school and just get a real job.
If you're really good, and you've made the right connections, then you can quit and go freelance.
Originally Posted by Mobius
You need a better tax guy. Or a tax guy, period.
I don't need a tax guy. What I do need is a good investment advisor.
Mobius, Y8s & Co. are correct however. Because I don't have a W-4, I have no withholding. So while most of y'all just get the taxes sucked out of your paycheck transparently throughout the year, I don't.
Technically, folks in my position are supposed to complete form 1040-ES and make quarterly estimated tax payments throughout the year. I specifically chose not to do this for 2009, because the penalty is only 2.66% of the underpayment, and the basis for the underpayment, in my case, is my prior year tax liability. Since I was a salaried employee for the first two-thirds of 2008, and unemployed for most of the last part, my 2008 total tax liability was only $14,587, and thus, my total penalty (assuming I did form 2210 correctly) should only be $291.
Well, ****. I can earn more than that letting the money sit in a deposit account! (Or at least, I was, prior to SDCCU pulling the plug recently on its extremely lucrative money market accounts.)
For 2010, I expect I'll be making the payments, as my basis will have more than doubled, and I've lost my easy-money deposit shelter.
Originally Posted by reddroptop
35k in Federal tax and estimates of 250-500k income?
**** US taxes are cheap.
**** US taxes are cheap.
Our base income tax rates are:
$0 to $8,374 = 10%
$8,375 - 33,900 = $837.50 plus 15% of the amount over $8,375
$34,000 - $82,400 = $4,681.25 plus 25% of the amount over $34,000
$82,400 - $171,850 = $16,781.25 plus 28% of the amount over $82,400
$171,850 - $373,650 = $41,827.25 plus 33% of the amount over $171,850
$373,650 and up = $108,421.25 plus 35% of the amount over $373,650
And, I'm paying extra tax because I'm not a corporate drone. However, I have no state tax for 2009 because I was living in Florida the whole year. I guess they figure that most of our residents pay enough provincial tax to you guys.
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03-27-2010, 01:27 PM
#20
Mine is a bit of a unique situation. under cretin conditions I get nearly all of my federal withholding back. Working over seas I can qualify for the foreign earned income tax exemption. In order to qualify, I must remain in a foreign country 330 days in 12 consecutive months. It is true, I could have had no federal taxes withheld from my pay, and that money would have made me nearly nothing in my savings account. or I can have the taxes withheld, and not fear getting sick and not making the exemption.
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