I’ve never been sympathetic to anti-tax rhetoric. Taxes are the price we pay for living in a country like the United States.
Sure, I wish the government had different spending priorities. But that’s why we have elected representation. If our legislators don’t do what we want, we vote them out of office. Taxes are the “price of admission” for civilization.
That’s what I’ve always believed.
Still, it’s one thing to have taxes withheld from my paycheck. That’s been going on my whole life, and I’m accustomed to it. I’m also used to paying taxes on the manufacturing business that I own with my family. That’s routine.
But it’s an entirely different thing to pay estimated taxes on my expected web income. I just wrote the checks for the first quarter payments. It’s as if a part of my soul has been ripped from me! (It’s certainly as if one month of my time has been taken from me.)
Where’s John Galt when I need him?
Funny you should mention Galt. I was just idly considering picking a Rand book for bookclub. Not that I necessarily subscribe to her beliefs, but one of her books may just make an interesting discussion. If nothing else, we could chalk one up for cultural literacy.
Those estimated taxes are excruciating.
Sucks doesn’t it? I’m not sure if this well be true for you, since only a portion of you income is from your web work, but the self-employment makes it hurt even more . . .
Obviously I can’t type this morning. I meant to say: I’m not sure if this will be true for you . . . but the self-employment tax makes it hurt even more.
You don’t have to pay ESTIMATED taxes. The 4/15 payment is for the actual or estimated income from 1/1 to 3/31. If you have the required records of your income and expenses for that period, it is not that difficult to calculate the actual self-employment and income taxes that are due. No estimation at all. The 6/15 payment is for the period 1/1 to 5/31 less the payment made on 4/15. Each quarter is calculated similarly. Estimated taxes are just a suggestion based upon the prior year to avoid penalties. I know, I know, way too literal.