US tax madness
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- 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
- Greedo0
Cracka please, as a freelancer, you can deduct every kind of bullshit you have a receipt for, which us salaried slobs don't get to do. So be more creative in your bookkeeping and shut up your face.
I do agree tho that the 30% flat rate for all self-employed people is pretty hefty, especially if you're making peanuts. That should be gradated, but again, with the 'creative' bookkeeping, it'd be super easy to slide down a few tax brackets...- Exactly. If your accountant didn't clue you in on deductions he's a moron.TheBlueOne
- 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
- pr20
That's exactly what i did, but still i didn't fucking count in %50 of my rent, utilities, phone and internet and food -- which trust me comes to way more then $1000. So how the hell am i suppose to survive if even on that $1000 leftover they still want to take away tax on it??????????
- 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?
- skt0
- TheBlueOne0
pr2 I'm still not following you at all here. Are you saying like you had $30,000 worth of work during the year and at the end of it, minus direct expenses you walked out with $31,000? And you spent $30,000 on direct design costs related to that work?
A) if so how the hell do you pay your everyday living/overhead?
B) If this is indeed the case you need to find a different line of work...
- 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
- scarabin_net0
maybe what he's saying is that according to his calculations his tax return totals $1000 and his accountant says that instead he actually owes money
- pr20
Yes, your examples is correct. I'm trying to answer your A question because the government apparently doesn't think paying for "everyday living/overhead" is necessary (or they really want you to go into debt to pay for it) because even on the leftover $1000 they want their money.... Total madness.
- scarabin_net0
i can't see any designer making a $1000 salary for the entire year
- Greedo0
You get to deduct expenses. We all have expenses. I pay tax on my salary, and probably way more than you, regardless of 'how much i spend to make it'. The fact remains that you cleared $1000 in profit, which the government, like it or not, is entitled to a share thereof.
If you don't like this, find a way to declare a loss, come up with more deductions, invest in real estate, get married, have kids, whatever it takes. But that's the system.
- TheBlueOne0
If you made $31,000 dollars on the year you'd be paying taxes on that, not the $1,000...I'm still lost on what your accountant is doing as per your initial description...
From that 31,000 you'd deduct all (or most) the direct business costs...so...and wouldn't you bill your clients directly for costs related to their projects anyway??
- i understand that, but no matter how u name it it's still a simple math: You made A; you spend B, you end up with $1000.pr2
- max_prophet0
sounds like you need to rethink your business.
- ismith0
I'm still fuzzy on how your work-related expenses could possibly be just $1000 short of your total income...