US tax madness
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- max_prophet0
so all your invoices for the entire year added up to just $31,000?
- blaw0
Maybe it's time for a career change. You'd clear more than a grand picking fly shit out of bread dough.
- TheFatBaron0
Pr2 - we've given examples to try to explain how you're wrong. However, you ignore them in favor of the "you're all poopy-heads" response.
- ukit0
Ultimately, taxes in the US are low compared to most of Europe
- not really. u have to pay for other stuff. so its the same.akrokdesign
- JSK0
Your math dont make sense because you have deductions.
Gross income of $31k with deduction
A. $31k - $30k = Profit $1k
Taxed for $1kGross income of $31k without deduction
B. $31k - 0 = Profit $31k
Taxed for $31kYou did not have gross income of $1k but you had $31k.
$31k and $1k in gross income differ in tax bracket.If all things were to be equal and look at percentage of profit on both income rate, it would be the same.
$31k - $30k = $1k = 95% deduction
$1k - $950 = $50 = 95% deductionBoth of the taxable income / profit would be $1k or $50
- NO i have nothing against paying taxes but i have a HUBE beef with the way those taxes are calculated.capsize
- i'm hearing u here, but my deductions only reflected what was needed to make the 31kpr2
- it doesnt matter because you had money coming in sum of $31k.JSK
- if dont want to pay for the $1k, get additional deduction of being equal or greater so you can report lossJSK
- so in other words i'm fucked because i had to spend 30k to make the 31k AND pay for my living expenses, right?pr2
- no, because you used your living expanse as deduction. Is your apartment / home in the deduction?JSK
- Think this way, you had 31K, techincally, you should have 50% in bank for taxes. you spent your tax money for deductionJSK
- only the %50 that i use as my officepr2
- There you go it has your living expanse covered. Its not government's fault that you dont know how to budget.JSK
- honestly, it will be around $300-500, why not pay it? and try to avoid audit?JSK
- yeah but i still have to come up with the rest %50 of the rent and other shit... so instead of leaving that 1k alone...pr2
- ...they still want a piece of it.pr2
- that's what i can't comprehend.pr2
- I would itemize your living expansive and take out the deduction to appear as thought you REALLY made 31K.JSK
- say you spent 15k in living, so pay tax on 15kJSK
- well after my jaw draped i just did it, BUT it means i'm fuzzing up the extra 1k BECAUSE their way of...pr2
- ...calculating the taxes seems out of whack to me.pr2
- but you are screwing their way. remember living expanse in not deductible.JSK
- i know, i din't deduct that, but according to the numbers there is no money left over to live onpr2
- hence you will be audited. I would put at least 30% as your living expanse and get taxed on that. Just to be safe.JSK
- TheBlueOne0
You made $1000? I don't understand...
- 7point340
you get taxed on your earnings.
they don't care what you spend it on or how much you spent. you still earned a certain amount and on average the US wants about a third of it
- max_prophet0
nobody who earns just $1000 a year loses $700 under the bed.
you're a cheating, tax-dodging liar!
- http://www.qbn.com/t…max_prophet
- we are talking about principles herepr2
- hahahaarthur
- oh yes they do
hahdskz
- TheBlueOne0
I'm still lost here. Are you saying you made $1000 for the ENTIRE year?
- And an accountant was still required.canuck
- yeah, after i subtracted what i spend on to make all my money i ended up with $1000pr2
- drops this years income down a couple hundred
lackofcolor - So what was your gross?babaganush
- grunttt0
vote.
- max_prophet0
In the UK you have something like £4500 before yo start paying tax.
The US probably has some similar allowance.
- Yeah exactly...so that's why I am confused...TheBlueOne
- so what happens if you spend £4400 to make that £4500???pr2
- you're homeless but you dont pay tax.max_prophet
- TheBlueOne0
I am still confused - if you only made $1000 for the year where the hell do you live? In a cardboard box?
- lackofcolor0
are subtracting basic things to get down to a hundred like food and rent and shit. cause if you only have a 1000 to spend in a year I would assume you are homeless.
- max_prophet0
you're redflagging for an audit with these kind of figures.
- i got recipes for everything, i don't carepr2
- if anything i'm red flagged because i clearly shows their formulas are fake.pr2
- recipes for cookin the books!!max_prophet
- still living in a wonder land where the gov't is always right and never lies/steals??? Huh?pr2
- killthefish0
If after legitimate expenses you clear $1000, I'm pretty sure you aren't taxed in the US, either.
The problem mr. pr2 is that it's impossible to tell from your description what exactly is going on. It's not "simple math," because there's no data. Without data, it's impossible to tell: 1. What government is taxing you (state, local, federal,) 2. Is your idea of expenses not the same as your accountant's idea of expenses? 3. Is your accountant's idea of expenses not the same as the government's idea of expenses?
From what you keep saying it sounds to me like the problem has to be somewhere around #2. But, again, there is minimal data. So #4 would be: are you just making shit up to get people into a discussion with nonsense at its heart? If so: ear.
- NO i have nothing against paying taxes but i have a HUBE beef with the way those taxes are calculated.capsize
- TheBlueOne0
This whole thing makes no kinds of sense.