Any accountants in the house?

[opinion914]

Something doesn't add up.

Did my taxes. getting:
$2220 back fed,
$0 back state.

then i get a 1099-misc in the mail for some consulting i did for $3300, fine, i made the money now i need to pay tax on it... unfortunately this is what it did to my return

$900 back fed
owe state 200$

So i go from getting back a gross of $2200, to now getting back a gross of $700.

That's a difference of $1500 i'm out for a $3300 job? How does that add up?!

tia

Kevin

[Jake]

When you get paid as an independant contractor (form 1099) you are subject to self employment tax (Line 57 on Form 1040). The SE tax rate is 15.3%. The rate consists of two parts: 12.4% for social security and 2.9% for Medicare. This SE tax is added to your tax from the tax tables computed on Line 44. However, you can deduct half of your SE tax on Line 27 to reduce your AGI.

That's the most basic explanation I can give without seeing your tax return.

[opinion914]

Thanks Jake, for the tax info but more importantly, is that a Scarlett Johansson flick. Dirty dirty little girl

Im definately getting taxed at a higher percentage than 15.3. Unless it went 15.3% for my entire income, W2 included?

[Jake]

The 15.3% tax rate is only on your 1099 income - on your W-2 you only pay 7.65% since your employer pays the other half. Your entire income (taxable income on Line 43 of Form 1040) is getting taxed at whatever tax bracket you are in. Like I said, I can't really be more helpful without knowing your situation.

[Cakes206]

The first think ya gotta ask yourself is, would I really want tax advice from this guy...then go from there.

[Xracer264]

Originally Posted by opinion914

Something doesn't add up.

Did my taxes. getting:
$2220 back fed,
$0 back state.

then i get a 1099-misc in the mail for some consulting i did for $3300, fine, i made the money now i need to pay tax on it... unfortunately this is what it did to my return

$900 back fed
owe state 200$

So i go from getting back a gross of $2200, to now getting back a gross of $700.

That's a difference of $1500 i'm out for a $3300 job? How does that add up?!

tia

Kevin

Not sure how your reporting your consulting work but you might what to set up a Schedule C and deduct expenses from the income of $3300. Travel, use of computer, car miscellaneous expense....

[opinion914]

Having no LLC or business designation yet I'm not sure i can deduct those things, and i don't have the receipts anyway. Next year will be a different story.

[Xracer264]

Originally Posted by opinion914

Having no LLC or business designation yet I'm not sure i can deduct those things, and i don't have the receipts anyway. Next year will be a different story.

Well for a schedule C you do not need to be an LLC, Corp, S Corp or partnership because it still flows through your personal return. As far as receipts......

[Jake]

[opinion914]

Or maybe i doooooo have receipts. Let me check my neighbors garbage.

[CORNBREAD]

Originally Posted by Cakes206

The first think ya gotta ask yourself is, would I really want tax advice from this guy...then go from there.

That's not an accountant you dirtbag. That's "the fatigues" from seinfeld. It's JPeterman catalogue.

[John712]

Originally Posted by CORNBREAD

That's not an accountant you dirtbag. That's "the fatigues" from seinfeld. It's JPeterman catalogue.

Oh trust me, This is Cakes were talking about, he is well aware of who he is

[Cakes206]

Thank you John.

[SAXON117]

Did the 3300 jump you up another tax bracket? That will fuck ya over everytime! Kevin, you need to do side work under the table!

[opinion914]

that's what i'm thinking Mark, must have bumped me up just enough. Whatever, i'll be over it by Americade!