Tax time - no reach-around

[widebody911]

I just had to write a big phat check to Uncle Sam, not for '04 taxes, but as part of my estimated taxes for '05, now that I'm self employed. Even better, I probably won't see the cash I've made so far for another month or so; I'm paying taxing on money that's never even crossed my fingers! Like paying alimony to a woman I haven't shagged yet!

While I have a newfound respect for accountants and their patience for this mind-numbing banality, in this day and age they have to have all this computerised and automated. In short, I need to find an accountant.

Just whinging, that is all. Uncle Sam also stole two and a half hours of prime Porsche-work time from me, the bastard!

[BlueSkyJaunte]

You sound like a Republican.

[onewhippedpuppy]

If there's one thing I've learned from my wife, the accountant, is that you WILL GET BACK everything you pay an accountant, and then some. That is, if you have the right accountant. Just an example, her aunt and uncle tried to DIY this year with Turbo Tax, because they're too damn cheap to pay someone. They were *****ing about how little they were getting back, so she started asking questions. Turned out they failed to file for the child tax credit (3 kids), and a number of other things they weren't aware of, and the program doesn't prompt for. She ended up getting them back an additional $3000 or so. If they had paid $150 for a tax appointment, there wouldn't have been a problem, it was just basic stuff. If you have the deductions to itemize, pay an accountant, you'll come out ahead in the end.

[911S Targa]

and a number of other things they weren't aware of,

Like ?

[onewhippedpuppy]

She's the accountant, I'm the aspiring engineer, we're at different ends of the vocation spectrum. If I remember correctly, just different stuff they could use for deductions, once you get into it there's a lot of options, and I know none of them. Total ignorance is one of the perks of being married to an accountant.

[84porsche]

An article a few years ago in the WSJ which I wish I saved mentioned that very few Americans maximize the available deductions.

[Hugh R]

Don't forget that as self employed you have to pay both sides of Social Security too! Nothing like being self employed to make you into a dare I say it (conservative) noticed I didn't say Republican! Talk to an accountant, you should be able to only pay taxes on what you've received, not billed.

[widebody911]

I don't like the taxes, but then again, I don't like the though of blowing my tax money on propping up 3rd-world countries. I don't make enough to qualify for any of the so-called 'tax breaks' the 'conservatives' crow on about; IIRC the threshold there is ~500k

[RickM]

Originally posted by onewhippedpuppy
If I remember correctly, just different stuff they could use for deductions, once you get into it there's a lot of options...

...and like H&R Block advertises, you can have an accountant review past returns for accuracy. You can potentially collect on underpayments from previous years.

[tabs]

Don't you see that Proping up 3rd world countries is the cost of doing business....so that you can enjoy the Porsche you own...

[gr8fl4porsche]

Originally posted by widebody911
I'm paying taxing on money that's never even crossed my fingers!

Thom,
I run a contracting company and we use an accounting method in which our revenues are based on work in progress billings. We are taxed on billings not cash. I have to pay taxes on a bill I send to a customer regardless of whether or not they pay the invoice. I can eventually write off a bad debt a couple of years later when I give up trying to collect and recoupe my tax payment.

So I know how you feel.

[Burnin' oil]

BITE ME!!! EVERYBODY BITE ME!!!!