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Taxes make my head hurt.
running
sunnywiz
Yeehaw. So.. The deadline for quarterly estimated taxes is coming up here.. June 17th.
  • I currently have a bunch of taxes paid through my employment with UGS.
  • I will be paid a trifling amount for my contracting work by June 17th.
  • I have a bunch of new office expenses that I can deduct.
  • I have mileage on my vehicle that I can deduct.
  • I have absolutely no idea how much money I'll be making between now and the end of the year.
  • I will have to divvy up IA taxes and KY taxes -- and I don't know if they do it on a Calendar Year % basis, or if its "this was earned in Iowa, this was earned in KY".

My head hurts.

The good news is, I put together a spreadsheet to do the estimation process, and right now, if I don't make any more money in the year, I'm ahead. So, i'm not going to pay any estimated taxes this time. October might be different.

(It has been suggested to me: Just don't pay any taxes, take the penalty (which I can more than make up for by keeping the would-be tax money in a savings account), and then next year start fresh with quarterly estimates.)

I've never had to use a real tax person before, other than the stardard H&R Block stuff (once). I might have to do that now... This will not be solved today. But for sure, I can do the estimated taxes thing in a way that I feel comfortable.

Interestingly, my tax rate(s) are:
  • 25% to Federal
  • 15.3% Self-Employment (Social Security + Medicare, this went up from when I was regularly employed)
  • 6% KY State Taxes
for a grand total of like 45%. So, basically one half of income goes bye bye.

?

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