No ereader for me...:(

nikkie · 02-07-2010, 12:12 AM

Well, just did my taxes, and they turned out to be twice as much as I had expected. Wiped out my savings and will be paying for the next year. Lame!

Anybody else had their ereader dreams crushed by tax season?

kindlekitten · 02-07-2010, 12:37 AM

*pat pat* sorry sweetie
I have a superb accountant so I do not end up in jams like that

Ervserver · 02-07-2010, 12:50 AM

have always gotten a refund myself......

nikkie · 02-07-2010, 12:53 AM

How does one end up procuring one of these "accountant" people? And what tax bracket should you be in for the benefits to outweigh the costs?

Basically, do you just phone around? What do you bring in to your consultations?

I don't keep any paper records of financial transactions because everything I do is online. How do you deal with this?

Note: All I know about accountants I know from reading "Cathy"...

nikkie · 02-07-2010, 12:55 AM

Quote:

Originally Posted by Ervserver

have always gotten a refund myself......

Yeah, that was the case with me too until this year. But I was hired on as a contractor, so nothing is deducted from my check, and I pay it all at tax time.

Javed · 02-07-2010, 01:06 AM

@nikkie
If your transactions are done online then you should have receipts that are emailed to you (if not then you could ask for these). These could all be put in a folder for tax purposes. Expenses incurred by conducting your work may be tax deductible. This means less tax to pay if the deductibles are claimed in your tax return. You could phone around to see the costs of tax agents in your area; or better still ask people you may know, near you, who they recommend (if this is possible). Personal recommendations save you having to wonder if they are any good and what they cost.

mrscoach · 02-07-2010, 11:38 AM

We have to call the woman who does our taxes back and see what the verdict is. Hoping we get back a bit. Three of us in college, medical expenses, and a new vehicle (because the old one was totaled, only suprficial injury, fortunately) add up to more deductions.

Wetdogeared · 02-07-2010, 11:49 AM

Quote:

Originally Posted by nikkie

Yeah, that was the case with me too until this year. But I was hired on as a contractor, so nothing is deducted from my check, and I pay it all at tax time.

When I switched over to contractor (which meant being self employed) many years ago, I had to start charging the client the going rate of GST (Goods and Services Tax) for my services, and submit *quarterly* installments to Revenue Canada for the GST I had collected on their behalf plus an estimated 1/4 of a years taxes owed on earnings. It was a total pain in the a$$.

Just don't get behind in payments or penalties and interest will soon get out of control.

happy_terd · 02-07-2010, 12:22 PM

I generally tend to get as little as possible back on purpose. Why give the government an interest free loan?

kindlekitten · 02-07-2010, 06:37 PM

Quote:

Originally Posted by nikkie

How does one end up procuring one of these "accountant" people? And what tax bracket should you be in for the benefits to outweigh the costs?

Basically, do you just phone around? What do you bring in to your consultations?

I don't keep any paper records of financial transactions because everything I do is online. How do you deal with this?

Note: All I know about accountants I know from reading "Cathy"...

oh criminy kiddo! you are in microsoftland and obviously doing ok as a contractor. you ABSOLUTELY need an accountant!!!

true story;

our original accountant did a "Willie Nelson" number on us and we were completely in the dark until "NO PAY DUE" was on the pay checks. the woman we use got us out of that hot water and has kept us sane. that's with me working literally all over the country (and occasionally out of the country) along with previous issues. she does the FILs taxes, he's an expat, ours, my folks, and many other friends and family. she goes the extra 20 miles and has taken numerous IRS tax courses and can actually catch them at their own game. if you're interested, PM me!

nikkie · 02-07-2010, 11:31 PM

Thanks all. Guess I need to get on the boat with the right way to deal with money! I'm recently out of college, so the advice is greatly appreciated.

JSWolf · 02-09-2010, 09:36 AM

Quote:

Originally Posted by nikkie

Thanks all. Guess I need to get on the boat with the right way to deal with money! I'm recently out of college, so the advice is greatly appreciated.

Do what you would do if you were working for an employer. Just take out so much per pay check based on some percentage and that will go to paying your taxes so you won't get hit with a tax bill.

Darqref · 02-10-2010, 12:42 AM

Quote:

Originally Posted by nikkie

Thanks all. Guess I need to get on the boat with the right way to deal with money! I'm recently out of college, so the advice is greatly appreciated.

There are 3 common ways to be a contractor at or around MS (I've been there, plus several other companies over the years)

1. (the most common at MS itself) You are the employee of a contract agency. They should take out your taxes, and usually also have access to a 401k, etc, even if they help don't contribute to it. Make use of such savings plans.

2. Independent Contractor. You are actually a business, and must procure a business license. You'll end up paying self-employment taxes, which effectively includes the employer's portion of the payroll tax. You should demand more money than you'd get if you worked with an agency. This really only works well if you have contracts with more than one company. You're responsible to set up some kind of retirement system.

3. Temporary Employee. The Company you work for still takes out taxes and such, but no other benefits. earnings *should* be reported to you on a 1099misc form, and you escape the self-employment tax. still no retire bennies.

Be careful how you do this. If you are an independent Contractor, AND you have only one employer/contract, then you must be very careful, or Washington may judge you a "statutory employee". It results in fines, both for you and the company (when those rules went into effect about 15 years ago, the company I worked for converted me from an independent to a temp employee, just to avoid the paperwork hassles.)

Welcome to the contractor world. If you're at MS, they will make you take a couple of months away every year, to make sure you don't come anywhere near being classified as an employee. This is one of the reasons to work with an agency, 'cause they'll help you find alternate positions (they don't get paid if you don't get paid.)

nikkie · 02-10-2010, 03:10 AM

Quote:

Originally Posted by Darqref

There are 3 common ways to be a contractor at or around MS (I've been there, plus several other companies over the years)

1. (the most common at MS itself) You are the employee of a contract agency. They should take out your taxes, and usually also have access to a 401k, etc, even if they help don't contribute to it. Make use of such savings plans.

2. Independent Contractor. You are actually a business, and must procure a business license. You'll end up paying self-employment taxes, which effectively includes the employer's portion of the payroll tax. You should demand more money than you'd get if you worked with an agency. This really only works well if you have contracts with more than one company. You're responsible to set up some kind of retirement system.

3. Temporary Employee. The Company you work for still takes out taxes and such, but no other benefits. earnings *should* be reported to you on a 1099misc form, and you escape the self-employment tax. still no retire bennies.

Be careful how you do this. If you are an independent Contractor, AND you have only one employer/contract, then you must be very careful, or Washington may judge you a "statutory employee". It results in fines, both for you and the company (when those rules went into effect about 15 years ago, the company I worked for converted me from an independent to a temp employee, just to avoid the paperwork hassles.)

Welcome to the contractor world. If you're at MS, they will make you take a couple of months away every year, to make sure you don't come anywhere near being classified as an employee. This is one of the reasons to work with an agency, 'cause they'll help you find alternate positions (they don't get paid if you don't get paid.)

I got mine on a 1099-misc, but had nothing taken out, and filed as an independent contractor (and had to pay the extra 15%). What's the real difference between #2 and #3?

kindlekitten · 02-10-2010, 11:40 AM

with #3, you have less out of pocket expenses, but also fewer advantages. for instance with #2 if for some reason you are injured while working, you will be able to claim L&I, and also unemployment as you are paying all of the withholdings an employer normally would. probably the best long term situation, harshest short term

02-07-2010, 12:12 AM	#1
nikkie Guru Posts: 614 Karma: 73700 Join Date: Oct 2009 Location: WA, USA Device: Android, Kindle Paperwhite, lots of ancient readers	No ereader for me...:( Well, just did my taxes, and they turned out to be twice as much as I had expected. Wiped out my savings and will be paying for the next year. Lame! Anybody else had their ereader dreams crushed by tax season?

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
eReader Yet?	NeweReader	Astak EZReader	4	06-16-2010 04:54 PM
Unutterably Silly eReader-Spotting / eReader in Film und Fernsehen	beachwanderer	Lounge	1	04-29-2010 04:26 PM
ereader.com	camgee	Ectaco jetBook	1	04-01-2010 09:14 PM
eReader (pdb) purchased ebooks on B&N eReader on iPhone?	bthoven	Reading and Management	5	12-23-2009 06:52 AM
Fictionwise eReader Sale & eReader for Blackberry beta	AnemicOak	Deals and Resources (No Self-Promotion or Affiliate Links)	6	03-23-2009 03:08 PM

02-07-2010, 12:37 AM	#2
kindlekitten Professional Adventuress Posts: 13,368 Karma: 50260224 Join Date: Sep 2009 Location: The Olympic Peninsula on the OTHER Washington! (the big green clean one on the west coast!) Device: Kindle, the original! Times Two! and gifting an International Kindle	pat pat sorry sweetie I have a superb accountant so I do not end up in jams like that

02-07-2010, 12:50 AM	#3
Ervserver Wizard Posts: 2,624 Karma: 1008294 Join Date: Dec 2007 Location: Iowa, USA Device: Nook Simple Touch	have always gotten a refund myself......

02-07-2010, 12:53 AM	#4
nikkie Guru Posts: 614 Karma: 73700 Join Date: Oct 2009 Location: WA, USA Device: Android, Kindle Paperwhite, lots of ancient readers	How does one end up procuring one of these "accountant" people? And what tax bracket should you be in for the benefits to outweigh the costs? Basically, do you just phone around? What do you bring in to your consultations? I don't keep any paper records of financial transactions because everything I do is online. How do you deal with this? Note: All I know about accountants I know from reading "Cathy"...

02-07-2010, 01:06 AM	#6
Javed Grand Sorcerer Posts: 10,270 Karma: 1126878541 Join Date: Oct 2009 Device: Astak Pocket PRO, iPod Touch, PRS-650	@nikkie If your transactions are done online then you should have receipts that are emailed to you (if not then you could ask for these). These could all be put in a folder for tax purposes. Expenses incurred by conducting your work may be tax deductible. This means less tax to pay if the deductibles are claimed in your tax return. You could phone around to see the costs of tax agents in your area; or better still ask people you may know, near you, who they recommend (if this is possible). Personal recommendations save you having to wonder if they are any good and what they cost.

02-07-2010, 11:38 AM	#7
mrscoach Guru Posts: 767 Karma: 4837659 Join Date: Aug 2009 Location: San Angelo Texas Device: Samsung Galaxy tab	We have to call the woman who does our taxes back and see what the verdict is. Hoping we get back a bit. Three of us in college, medical expenses, and a new vehicle (because the old one was totaled, only suprficial injury, fortunately) add up to more deductions.

02-07-2010, 12:22 PM	#9
happy_terd Banned Posts: 13,045 Karma: 10105011 Join Date: Jan 2010 Location: Finally made it to Walmart. Device: PRS 420	I generally tend to get as little as possible back on purpose. Why give the government an interest free loan?

02-07-2010, 11:31 PM	#11
nikkie Guru Posts: 614 Karma: 73700 Join Date: Oct 2009 Location: WA, USA Device: Android, Kindle Paperwhite, lots of ancient readers	Thanks all. Guess I need to get on the boat with the right way to deal with money! I'm recently out of college, so the advice is greatly appreciated.

02-10-2010, 11:40 AM	#15
kindlekitten Professional Adventuress Posts: 13,368 Karma: 50260224 Join Date: Sep 2009 Location: The Olympic Peninsula on the OTHER Washington! (the big green clean one on the west coast!) Device: Kindle, the original! Times Two! and gifting an International Kindle	with #3, you have less out of pocket expenses, but also fewer advantages. for instance with #2 if for some reason you are injured while working, you will be able to claim L&I, and also unemployment as you are paying all of the withholdings an employer normally would. probably the best long term situation, harshest short term