Fjd Posted April 16, 2015 Share Posted April 16, 2015 I don't envy you state income tax people. FFS move! When I was involved with a lot of Merger & Acquisition due dilligence work for clients, I could end up working significant portions of the year in five or six different states and had to file a state tax return in each state. I would not be cut out to do taxes as my day job and after those years of multiple state returns, I sure would be open to move to one of the no state income tax states; however, it may not be possible until I retire. Quote Link to comment Share on other sites More sharing options...
Fjd Posted April 16, 2015 Share Posted April 16, 2015 Some morons might even use it to buy idler wheel turntables! Hookers and blow---way better. That reminds me, I need to find that "what I got on Craig's List" thread. Quote Link to comment Share on other sites More sharing options...
Ceptorman Posted April 16, 2015 Share Posted April 16, 2015 uhh... I'm wondering if with credits and all if she isn't actually getting back more than she ever paid. Oh yes, she's probably getting at least 10 times more than she paid, that's my point. Having kids and not much income will get you an incredible tax check. I think she can actually take in weekly on her paycheck. Quote Link to comment Share on other sites More sharing options...
tigerwoodKhorns Posted April 17, 2015 Share Posted April 17, 2015 I pay taxes 4 times a year because I am self employed so April 15th is just another check from money that must be put aside (through discipline). I just got finished reading "Rich Dad Poor Dad" from a recommendation on this site a little while back. Definately worth reading. I am looking at my "tax rate" much differently after readign thsi book. Unrealized gains utilizing 1031's on land are beautiful as the tax of "zero" on these gains really brings your effective tax rate down on the total that you earn in a year. I also recommend "The Millionaire Next Door." There is real truth in there that is ignored by the masses. I wish that I had read these books when they first came out. Anyone know of any other "must reads" that are similar? Quote Link to comment Share on other sites More sharing options...
wvu80 Posted April 17, 2015 Share Posted April 17, 2015 Zeus just got a set of $2,000 Belles for $200. Shouldn't he have to declare that $1800 gain as income? Doesn't the tax code deal with that somewhere? Quote Link to comment Share on other sites More sharing options...
muel Posted April 17, 2015 Share Posted April 17, 2015 If you owed 31, 200 in taxes with deductions I struggle to understand your complaint. Well, that's money that could have been spent on hookers and blow. Gotta have your priorities straight you know. Biggest thing that sucks for me is the self employment tax. Basically figure out your normal taxes then you have 15.3% more tax on top of that. Most people's effective rate isn't even that. You might consider incorporating... at least a LLC or S corp and pay yourself a salary. Yes, you will pay double on the FICA but you pay yourself a reasonable salary. Cost's more to have your taxes done but WAY better than self employment tax. Something to think about anyway and/or checkout for your situation. I worked 10 years for myself... some of the best 10 years of my life... but my "boss" never let me take a day off. 1 Quote Link to comment Share on other sites More sharing options...
K5SS Posted April 17, 2015 Share Posted April 17, 2015 -$17,000. Feels good to be a contributing member of society. Quote Link to comment Share on other sites More sharing options...
Paducah Home Theater Posted April 17, 2015 Share Posted April 17, 2015 If you owed 31, 200 in taxes with deductions I struggle to understand your complaint. Well, that's money that could have been spent on hookers and blow. Gotta have your priorities straight you know. Biggest thing that sucks for me is the self employment tax. Basically figure out your normal taxes then you have 15.3% more tax on top of that. Most people's effective rate isn't even that. You might consider incorporating... at least a LLC or S corp and pay yourself a salary. Yes, you will pay double on the FICA but you pay yourself a reasonable salary. Cost's more to have your taxes done but WAY better than self employment tax. Something to think about anyway and/or checkout for your situation. I worked 10 years for myself... some of the best 10 years of my life... but my "boss" never let me take a day off. I asked my accountant about that and she was weird about it. Probably going to have to switch accountants and do that though. Quote Link to comment Share on other sites More sharing options...
Ceptorman Posted April 17, 2015 Share Posted April 17, 2015 With an S-corp, you do have to pay yourself a wage to show the IRS you're in compliance. You can't make 100k, pay yourself 10k to get out of 90k worth of self employment tax. I am on a salary about 30-40% of my companies taxable income. 1 Quote Link to comment Share on other sites More sharing options...
Paducah Home Theater Posted April 17, 2015 Share Posted April 17, 2015 If you owed 31, 200 in taxes with deductions I struggle to understand your complaint. Actually let me break it down. My business is just my side job. I have a normal job during the day. By the time I even start on my business ventures, we're looking at 28% federal, 6% state, 1% county, 15.3% self employment... basically over half of everything I make is instantly gone. Then there's sales tax, property tax, gasoline tax, beer tax, plane ticket taxes, and who knows what other kind of indirect taxes on whats left. What's there to complain about? Quote Link to comment Share on other sites More sharing options...
muel Posted April 17, 2015 Share Posted April 17, 2015 If you owed 31, 200 in taxes with deductions I struggle to understand your complaint. Well, that's money that could have been spent on hookers and blow. Gotta have your priorities straight you know. Biggest thing that sucks for me is the self employment tax. Basically figure out your normal taxes then you have 15.3% more tax on top of that. Most people's effective rate isn't even that. You might consider incorporating... at least a LLC or S corp and pay yourself a salary. Yes, you will pay double on the FICA but you pay yourself a reasonable salary. Cost's more to have your taxes done but WAY better than self employment tax. Something to think about anyway and/or checkout for your situation. I worked 10 years for myself... some of the best 10 years of my life... but my "boss" never let me take a day off. I asked my accountant about that and she was weird about it. Probably going to have to switch accountants and do that though. Yes, you want someone who is comfortable and experienced with this kind of stuff. Many are not! I wouldn't want a river boat gambler as my accountant but someone who knows the right things for you to do as well as what type of incorporation would be best for your situation. There is also some liability protection that incorporating can offer. I can't imagine that you wouldn't be able to save thousands in the end though. Self employment tax sucks! Quote Link to comment Share on other sites More sharing options...
Fjd Posted April 17, 2015 Share Posted April 17, 2015 If you owed 31, 200 in taxes with deductions I struggle to understand your complaint. Actually let me break it down. My business is just my side job. I have a normal job during the day. By the time I even start on my business ventures, we're looking at 28% federal, 6% state, 1% county, 15.3% self employment... basically over half of everything I make is instantly gone. Then there's sales tax, property tax, gasoline tax, beer tax, plane ticket taxes, and who knows what other kind of indirect taxes on whats left. What's there to complain about? I suspect some level of confusion arises by presenting the tax bill you have in dollars and presenting the statutory tax rate as it would seem this implies you made $62,400 and paid $31,200 in taxes. I'm getting a few impressions where we don't know your effective tax rate, which would clarify a few aspects and others may get the impression that you may not be getting proper advice and your income is not being properly evaluated to minimize the tax burden. Quote Link to comment Share on other sites More sharing options...
Paducah Home Theater Posted April 17, 2015 Share Posted April 17, 2015 (edited) I suspect some level of confusion arises by presenting the tax bill you have in dollars and presenting the statutory tax rate as it would seem this implies you made $62,400 and paid $31,200 in taxes. I'm getting a few impressions where we don't know your effective tax rate, which would clarify a few aspects and others may get the impression that you may not be getting proper advice and your income is not being properly evaluated to minimize the tax burden. Basically in the end I paid about a 23% effective total rate on about $118K, but that's mixing both my normal job and my business and counting city/state/self/county/etc. So yeah it was about $27,000 in taxes total plus I had to prepay for first quarter on the business. What sucks is that I'm already in a decent tax bracket before I even make a dollar from my business. That's what ticks me off. Most people looking for a second job would be wary of taking it if they knew over half of everything they make would instantly be taken away in taxes but that's exactly what I'm dealing with. I have a full time engineering job and have already been hit up on it. I just run my side business to try to get ahead, so seeing over half of it disappear is aggravating. Edited April 17, 2015 by MetropolisLakeOutfitters Quote Link to comment Share on other sites More sharing options...
Superdave Posted April 17, 2015 Share Posted April 17, 2015 If you owed 31, 200 in taxes with deductions I struggle to understand your complaint. Well, that's money that could have been spent on hookers and blow. Gotta have your priorities straight you know. Biggest thing that sucks for me is the self employment tax. Basically figure out your normal taxes then you have 15.3% more tax on top of that. Most people's effective rate isn't even that. You might consider incorporating... at least a LLC or S corp and pay yourself a salary. Yes, you will pay double on the FICA but you pay yourself a reasonable salary. Cost's more to have your taxes done but WAY better than self employment tax. Something to think about anyway and/or checkout for your situation. I worked 10 years for myself... some of the best 10 years of my life... but my "boss" never let me take a day off. I asked my accountant about that and she was weird about it. Probably going to have to switch accountants and do that though. My company is set up as a LLC. Works out good, not double taxed. Quote Link to comment Share on other sites More sharing options...
Fjd Posted April 17, 2015 Share Posted April 17, 2015 I have a full time engineering job and have already been hit up on it. I just run my side business to try to get ahead, so seeing over half of it disappear is aggravating. I read the book "Rich Dad, Poor Dad" sometime during the early 2000s that tigerwoodkhorns references in his post above; however, I've been on a similar path as you from the perspective of income through wages and side business and have not been able to move my personal finances in the direction of the book in relation to managing assets and liabilities in a way to generate income. Quote Link to comment Share on other sites More sharing options...
akdave Posted April 17, 2015 Share Posted April 17, 2015 I pay taxes 4 times a year because I am self employed so April 15th is just another check from money that must be put aside (through discipline). I just got finished reading "Rich Dad Poor Dad" from a recommendation on this site a little while back. Definately worth reading. I am looking at my "tax rate" much differently after readign thsi book. Unrealized gains utilizing 1031's on land are beautiful as the tax of "zero" on these gains really brings your effective tax rate down on the total that you earn in a year. I also recommend "The Millionaire Next Door." There is real truth in there that is ignored by the masses. I wish that I had read these books when they first came out. Anyone know of any other "must reads" that are similar? Stanley's follow up "The Millionaire Mind" is a great one as well. Another one I really like is written by a Rabbi named Daniel Lapin "Business Secrets of the Bible". It is in no way an evangelical piece, it addresses a Jewish outlook toward finances, making and handling money, etc. I found it fascinating & very helpful. His book "Thou Shall Prosper" was good too, but it was a MUCH slower read, then re-read, stop and think kind of book. Business Secrets was a faster mover for me. Quote Link to comment Share on other sites More sharing options...
Paducah Home Theater Posted April 17, 2015 Share Posted April 17, 2015 The problem which causes all the complaints isn't really the tax rate, it's the low wage rates. Wages and salaries have been falling steadily since the 1970s, because workers are not getting the productivity gains. If wages had kept pace FAIRLY with productivity, the average income today would be $110,000, not the lousy $49,000 it is. The minimum wage would be around $20. If you had essentially TWICE as much pay today as you have, you would not hear so many complaints about "taxes." There's a simple reason why wages have steadily fallen over the past 50 years. Sadly, nothing is being done to reverse it. I don't know that I agree, it seems that tax return day is usually the happiest day of the year for people with lower wages. Only people I've seen complain about the amount they had to pay in besides myself are other friends who I know have good jobs. The whole "if wages kept up with productivity" argument is kind of bogus though, I realize it makes for good political fodder with Elizabeth Warren but its not a good justification for the minimum wage, whose jobs are literally not affected hardly at all with advances in technology that boosts productivity. You can't say that since Johnny the engineer can now use a computer and be more productive, Derek the McDonalds cashier should get triple the salary. That's exactly what that study tries to say though. Quote Link to comment Share on other sites More sharing options...
tigerwoodKhorns Posted April 17, 2015 Share Posted April 17, 2015 I pay taxes 4 times a year because I am self employed so April 15th is just another check from money that must be put aside (through discipline). I just got finished reading "Rich Dad Poor Dad" from a recommendation on this site a little while back. Definately worth reading. I am looking at my "tax rate" much differently after readign thsi book. Unrealized gains utilizing 1031's on land are beautiful as the tax of "zero" on these gains really brings your effective tax rate down on the total that you earn in a year. I also recommend "The Millionaire Next Door." There is real truth in there that is ignored by the masses. I wish that I had read these books when they first came out. Anyone know of any other "must reads" that are similar? Stanley's follow up "The Millionaire Mind" is a great one as well. Another one I really like is written by a Rabbi named Daniel Lapin "Business Secrets of the Bible". It is in no way an evangelical piece, it addresses a Jewish outlook toward finances, making and handling money, etc. I found it fascinating & very helpful. His book "Thou Shall Prosper" was good too, but it was a MUCH slower read, then re-read, stop and think kind of book. Business Secrets was a faster mover for me. I have "The Millionaire Mind" on order and I already read his 3rd "Stop Acting Rich..." I have added the other books that you reccomend to my que. I have been arogant and dismissed these books as get rich quick schemes. It turns out that they are get rich slow scenarios, which is usually how real life works. A lot of the books were reinformcement for what I already do, other items I learned which is a good thing. I wish that I had read these 20 years ago. I had lunch with a few people that I have not seen in years. I discussed my business and one of them pointed out that I must have some inefficiency that I did not know of. Instead of getting upset, I searched and he was right. I made adjustments (including staying off of this forum) and made a big step up in efficiency. Moral, we can always learn, never let arrogance get in the way. Have you read much from the Rich Dad series? There was good info to take away from there. He has several more books, but I got really turned off when I saw Donald Trump on the cover of one of them. I don't think that I can read that one. Quote Link to comment Share on other sites More sharing options...
tigerwoodKhorns Posted April 17, 2015 Share Posted April 17, 2015 The problem which causes all the complaints isn't really the tax rate, it's the low wage rates. Wages and salaries have been falling steadily since the 1970s, because workers are not getting the productivity gains. If wages had kept pace FAIRLY with productivity, the average income today would be $110,000, not the lousy $49,000 it is. The minimum wage would be around $20. If you had essentially TWICE as much pay today as you have, you would not hear so many complaints about "taxes." There's a simple reason why wages have steadily fallen over the past 50 years. Sadly, nothing is being done to reverse it. I don't know that I agree, it seems that tax return day is usually the happiest day of the year for people with lower wages. Only people I've seen complain about the amount they had to pay in besides myself are other friends who I know have good jobs. The whole "if wages kept up with productivity" argument is kind of bogus though, I realize it makes for good political fodder with Elizabeth Warren but its not a good justification for the minimum wage, whose jobs are literally not affected hardly at all with advances in technology that boosts productivity. You can't say that since Johnny the engineer can now use a computer and be more productive, Derek the McDonalds cashier should get triple the salary. That's exactly what that study tries to say though. No don't derail this. I need some good book recommendations! Quote Link to comment Share on other sites More sharing options...
minermark Posted April 17, 2015 Share Posted April 17, 2015 The Fed gets $900 The state kicks back $500. I tell this to the wife and she say's great, can i have the $400 for shopping? .....Humm, sure Dear. 3 Quote Link to comment Share on other sites More sharing options...
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