US tax madness
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- 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
- 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
- skt0
do you remember the time he fucked a girl in the arse without realising?
this thread is pretty much the same.
- i just fell on the fucking floor.killthefish
- link?ukit
- bwahahahaha! in reverse!lvl_13
- lolzarthur
- JSK0
No you are still taxed because $1000 if considered profit. His gross income could $100,000 or $5,000,000 that doesnt matter because he had 95% deduction.
When you do your taxes, you are given credit in the beginning before taxes for your gross income, thats the clearing limit.
- TheFatBaron0
Also, how is this income considered? Personal income? Business income? Keep in mind, that if you're self-employed, you still pay taxes on a personal income tax schedule.
- matt310
yes but he is only taxed on the profit - not the gross income, at least in canada
- ukit0
Put all this other shit aside, I am still trying to figure out why you don't charge more. If you are barely breaking even on every job that means you eat up the cost of every project without passing it on to the client and charge virtually nothing for your own services. How can you possibly expect to ever be satisfied with the outcome in that situation?
- matt310
haha I Just noticed the title of the thread is US tax madness - whoops, i'm an idiot
- TheBlueOne0
I lost interest about a half hour ago
- JSK0
I would actually save some of the deduction receipts and make your deduction to $15-20k and get taxed on rest.
You can say next year that you lost the receipts and didnt include in previous year. But adding them now.
- TheBlueOne0
You're doing it wrong.
- pr20
oh trust me, each year dealing wit the gov't i walk away with more knowledge on how to dodge it.