US tax madness
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- TheBlueOne0
I mean, you did work for x number of clients in the year and made say $30,000 in sales. That income puts you in a particular tax bracket and you pay taxes based on a % depending on that number.
Now if you're saying, in the course of the year you outlayed $30,000 to produce $31,000 worth of work then you are doing something very horribly wrong...
- Or his accountant made a big mistake, which is what I'd hope for at this point...ismith
- he's a blagger, that's all.max_prophet
- pr20
I think they gov't can keep on swindling us out of money because thet is always someone who will throw some phrases at us, just like you do. The bottom line is we are dealing with simple clear math here: It cost me 30k to make 31k and the gov't still wants some money here.
- ukit0
But how can you blame the gov for the fact that your production costs are so high? The whole point of capitalism is to encourage people to be efficient.
- ukit0
Anyway...your work is good. I feel kind of bad that I apparently take home twice as much in a week as you do in a year.
- 7point340
if it cost you that much, ie, work related, wouldn't you have 30k in deductions and therefore not have to pay taxes at all?
- this thread is starting to hurt my head7point34
- thank you, finally someone gets the general point.pr2
- Exactly. but count on an IRS audit if you claim like 95% of income for deductions. lol.fyoucher1
- Make sure you have receipts!fyoucher1
- like hundreds of them, want to see it?pr2
- so you spent 30K already tax free?capsize
- Good, don't lose them. Your chances for an audit are great. But, then again, that 30k deduction might be true.fyoucher1
- JSK0
You are comparing your self to someone who actually has cash flow of $1000 vs someone who made $31k and had $30k deduction.
$31 - $30 = $1
$1 - 0 = $1They look the same in math standing but you should be comparing someone who is making $30k vs $1k.
- arthur0
So your claiming all these false deductions to bring up your expenses, then complaining that you're only left with $1000 left over? Seems like the number would be much much higher if you were honest on your taxes.
- pr20
This thread aside, In all honesty most you apparently don't keep a good file as you assume that the 30k deduction is really though while in reality all you have to do it sum up your business receipts (that you don't keep, it looks like) and you would come close to that number.
- JSK0
Been there done that, almost got sent to jail for it but paid triple fine.
- babaganush0
So you've already paid tax on your 30k deduction? If not, surely your accountant is doing you a favour by finding 30k worth of deductions (and tyelling the government they were needed for you to be in business and are not taxable) leaving you only 1k worth of profit to be taxed on? which is either genius or incredibly dumb.
I can't think of any other way it could work. Especially as so many that have commented are in the same boat. Can it really be that you are Keanu Reeves/Neo and the rest are walking around in a false reality?
- sikma0
30K in deductions on 31K of income?
you are about to be audited
- killthefish0
Is there an award around here for dumbest thread ever?
I made $374,504 last year, but of course it cost me $371,409 to make that, because the car I drive to work is hella expensive, and then the fuckers want to tax me on $3000, which is simple maths, I just can't understand why they think I can pay for a fucking expensive car with a business model making less money minus expenses plus cost of living in a cardboard box (which besides how is anybody going to client me if i live in that for my office?) and they have such a fucked up accountant that I hired myself to tell me that they want ALL $678,494 OF MY DOLLARS that I made BEFORE PRIOR TO BUSINESS EXPENSES BUT AFTER BUSINESS EXPENSES and you want to say this system is not fucked up?
ffs!!!
- so many words, and not even one laughpr2
- Oh shit, sorry. *edit* -> "laugh"killthefish
- by jove i think ive got it.robco
- rupedixon0
oh dear
- JSK0
Should read up on gross income vs profit. there is a difference.
- u saying my math makes no sense?pr2
- unanimously most seem to be saying so...and most aren't lovers of either tax or the US governmentbabaganush
- yeah, bit noone provided any kind of different reasoning, i'm i'm hearing "u suppose to pay... that's it"pr2
- i genuinely want to see how people calculate it otherwise.pr2