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Old 01-11-2012, 07:21 PM   #21
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I think I may actually set aside some $ for MS for the NB.
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Old 01-11-2012, 07:24 PM   #22
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Quote:
Originally Posted by Braineack View Post
I just forgot to change my deductions.
I didn't realize they changed the tax code to allow you to claim cats as dependents.



When you're a 1099er paying quarterly taxes, there really aren't any loopholes. If you owe at the end of the year, you get slapped with a penalty unless

A: The amount owed is less than 10% of the total current-year tax burden, or
B: You paid at least as much in estimated taxes as 100% of the prior-year tax burden.

Needless to say, if your taxable income regularly fluxuates by 20-40k from year to year, this makes things rather annoying. You pretty much have to base your estimated tax payments on 100% of the prior year and risk winding up with a massive refund or else the penalties sting.


This thread has reminded me that it's just about time for the 4'th 2011 quarter payment. There goes another $9,500 out the door...
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Old 01-11-2012, 07:36 PM   #23
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I changed my exceptions half way through the year, but return will go to being completely debt free by the end of the year. As much as I would like to spend it all on gofast parts, priorities come first.
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Old 01-11-2012, 07:50 PM   #24
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I never had any real debt in my life (fawk yeah cheap Canadian education!) so I'm happy to spend it all on shiny things.

Next year will be different though - buying a house. Yay mortgage payments.
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Old 01-11-2012, 07:57 PM   #25
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Well, I know I'm not getting a refund back at least. We'll see what happens past that.
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Old 01-11-2012, 09:35 PM   #26
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Quote:
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There goes another $9,500 out the door...
Like complaining the caviar doesn't match your silk smoking jacket.
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Old 01-11-2012, 09:46 PM   #27
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NB miata, black, Torsen, 5 or 6 speed, factory options, not $hitty interior. Tax return may or may not cover sales tax on car.
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Old 01-11-2012, 10:06 PM   #28
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Originally Posted by rleete View Post
Like complaining the caviar doesn't match your silk smoking jacket.


In all seriousness, it really kind of pisses me off when I finish my Schedule SE and Form 1040 and realize that, for what I just paid in taxes, I could have purchased a brand new 3-series BMW / C-class Merc / Audi A5. I know, it's a first-world problem. But when you're driving an $800 car, it's still rather off-putting.
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Old 01-11-2012, 10:20 PM   #29
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I only paid one of my quarterly estimates last year - have until April to drop in another - but still - I could probably get 3 or 4 Xida double/triple sets for what Uncle Sam will ---- from me. Hmmm.. Xidas fit my GMC 1500 work truck right? I see a tax write-off in the near future...
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Old 01-11-2012, 10:28 PM   #30
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Quote:
Originally Posted by Joe Perez View Post


In all seriousness, it really kind of pisses me off when I finish my Schedule SE and Form 1040 and realize that, for what I just paid in taxes, I could have purchased a brand new 3-series BMW / C-class Merc / Audi A5. I know, it's a first-world problem. But when you're driving an $800 car, it's still rather off-putting.
Try living in Canada or Europe. You would have paid like 50% more, if not much more than that.
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Old 01-12-2012, 01:13 AM   #31
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Quote:
Originally Posted by Joe Perez View Post
I didn't realize they changed the tax code to allow you to claim cats as dependents.



When you're a 1099er paying quarterly taxes, there really aren't any loopholes. If you owe at the end of the year, you get slapped with a penalty unless

A: The amount owed is less than 10% of the total current-year tax burden, or
B: You paid at least as much in estimated taxes as 100% of the prior-year tax burden.

Needless to say, if your taxable income regularly fluxuates by 20-40k from year to year, this makes things rather annoying. You pretty much have to base your estimated tax payments on 100% of the prior year and risk winding up with a massive refund or else the penalties sting.


This thread has reminded me that it's just about time for the 4'th 2011 quarter payment. There goes another $9,500 out the door...
Holy ----. When I was a 1099 consultant, I was making $40/hr and my taxes were 8500 per YEAR. You're paying 9500 per quarter?! Jesus. Ballin.
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Old 01-12-2012, 01:27 AM   #32
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FRT_Fun...I'll sell you my PNP NB MS.
As for my tax money, I think I'm going to concrete the floor in the new garage. I better get more money back than I did last year. I filed my wife and mine together, but we both claim single with 0 dependents. I can't even tell you how much we got back last year, but it wasn't much. This year we made like $30,000 more than last year, so hopefully we get at least $4,000 back.
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Old 01-12-2012, 02:05 AM   #33
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Tax money. Hmm I deduct like a champ (Those PETA lifetime memberships aren't cheap) so I guess with my refund I will. Um

put all my refund in OTM options.
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Old 01-12-2012, 01:33 PM   #34
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I've had to pay the last two years. Total household income went up 8% this year but we also had a child. Not sure if I will owe or not.

Also had ~ $2000 in racing contingency payments which aren't taxed from the SCCA but are taxed at the end of the year as extra income. Trying to figure out how to deal with that. Treat it as self employed Race Car Driver income? My expenses for that self employment greatly exceeds the few bucks in contingency...
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Old 01-12-2012, 02:10 PM   #35
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Meh, I'll be getting some back...would rather be paying up a little. But I get to put down my tuition. That money will go toward paying off the last few dollars of my car. Once the car is payed off, I'll start taking those payments and dumping them into my ING account.
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Old 01-12-2012, 02:20 PM   #36
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Quote:
Originally Posted by Joe Perez View Post
When you're a 1099er paying quarterly taxes, there really aren't any loopholes. If you owe at the end of the year, you get slapped with a penalty unless

A: The amount owed is less than 10% of the total current-year tax burden, or
B: You paid at least as much in estimated taxes as 100% of the prior-year tax burden.

Needless to say, if your taxable income regularly fluxuates by 20-40k from year to year, this makes things rather annoying. You pretty much have to base your estimated tax payments on 100% of the prior year and risk winding up with a massive refund or else the penalties sting.


This thread has reminded me that it's just about time for the 4'th 2011 quarter payment. There goes another $9,500 out the door...
Joe, just a heads up. Iirc for next year if you are considered a high income earner (forget the threshold, but it's not that high), I think I read somewhere that you have to pay 110% of the past years taxes to be immune from any underpayment penalties vs. the current 100% same as prior year. Ymmv.
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Old 01-12-2012, 02:26 PM   #37
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Quote:
Originally Posted by Efini~FC3S View Post
Also had ~ $2000 in racing contingency payments which aren't taxed from the SCCA but are taxed at the end of the year as extra income. Trying to figure out how to deal with that.
Per IRS Publication 525 "Taxable and Nontaxable Income," under "Prizes and awards" on page 35, such income is reported on line 21 of form 1040 under "Other Income" and is taxable at the regular rate. It's treated the same way as gambling winnings, lottery and raffle winnings, Nobel / Pulitzer prizes (yes, they have a whole section on those), and so on.

It also notes that "Prizes and awards in goods or services must be included in your income at their fair market value," so if you want to be Dudley Do-right,
don't forget all of those free tires.
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Old 01-12-2012, 03:21 PM   #38
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My tax refund goes into savings that is our house down payment. Will hopefully be a homeowner this summer!
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Old 01-12-2012, 03:35 PM   #39
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All of mine is going to credit cards... bleh
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Old 01-12-2012, 05:47 PM   #40
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Quote:
Originally Posted by Joe Perez View Post
Per IRS Publication 525 "Taxable and Nontaxable Income," under "Prizes and awards" on page 35, such income is reported on line 21 of form 1040 under "Other Income" and is taxable at the regular rate. It's treated the same way as gambling winnings, lottery and raffle winnings, Nobel / Pulitzer prizes (yes, they have a whole section on those), and so on.

It also notes that "Prizes and awards in goods or services must be included in your income at their fair market value," so if you want to be Dudley Do-right,
don't forget all of those free tires.
But if I paid $6000 to win $2000 how do I deal with it?

My understanding is I have to treat it like a business, i.e. my business is being an amazing race car driver. Entry Fees, Tow Fuel, Race Fuel, etc. etc. etc are business expenses. Contingencies are business income. IRS will say racing is a hobby... I kept most of my racing expenses receipts from this year in anticipation of this mess...

Luckily I don't win tire contingencies...
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