I hate taxes! I want to gouge my eyes out!

[Buckmaster]

Two years ago when I had an employer the wife and I would file jointly and receive about $ 6,000.00 annually in taxes (2 kids, claiming zero dependents).

Now that I'm self employed, we end up having to pay about $ 5,000.00 every quarter into Federal, Ohio, Local, and Local.

I feel your pain Hicks and RD. You are not alone. It's quite painful and certainly puts a hurting on the savings account or what's left of my savings account.

 

[Beentown]

I am with you Hicks. I would not trade it, again. I have worked hourly, salary, commission, and self employed. I would find it REALLY hard doing anything else. I am not rich but I am doing well for the time being. I do appreciate that more than most I think.

Quarterly payments coming due are always something I dread I figure that I did a pretty good job on keeping up with it all year to only owe so little at the end of the year. Another thing that pissed me off is that I recieved my S.S. statement in the mail the other day...what a joke.

Beentown

 

[hickslawns]

I started this business 14 years ago. I have not received a W-2 since I got out of the National Guard in 2002. I agree Charles. It would be REALLY REALLY REALLY hard to do anything else at this point. Unfortunately,the government is taking away the initiative of the small businessman to succeed. Right now I am thinking to myself: Great, just wait until the end of 2011 when my wife is receiving her first (full year) w-2 as an RN. I can't wait to see how that kills us on taxes. I am thinking it is time to talk to the accountant. There have to be some ways to get around the taxes. Unfortunately, this would require being deceptive and I don't want to go there.

 

[Jackalope]

I started this business 14 years ago. I have not received a W-2 since I got out of the National Guard in 2002. I agree Charles. It would be REALLY REALLY REALLY hard to do anything else at this point. Unfortunately,the government is taking away the initiative of the small businessman to succeed. Right now I am thinking to myself: Great, just wait until the end of 2011 when my wife is receiving her first (full year) w-2 as an RN. I can't wait to see how that kills us on taxes. I am thinking it is time to talk to the accountant. There have to be some ways to get around the taxes. Unfortunately, this would require being deceptive and I don't want to go there.

Tax loopholes exist for a reason. When the tax code was being written and updated loopholes were placed in. Usually as a favor by politicians to their donors, lobbyist etc. Utilizing these these loopholes be it "deceptive" or not is as American as apple pie. We're Americans. We play baseball, watch Nascar, eat hamburgers, and cheat on our taxes.. If you play by their rules you will get squashed.

 

[Beentown]

Cough...creative accounting...cough. Hicks I am suprised that you don't have a shit ton of write offs. Use every one and more

Beentown

 

[hickslawns]

Cough...creative accounting...cough. Hicks I am suprised that you don't have a shit ton of write offs. Use every one and more

Beentown

Trust me on this one, if I buy a notepad and pen to write up an estimate those receipts are not getting thrown away. Large or small purchase, I take advantage of any legal write off I get. $20-30k in fuel receipts? Yep, I have boxes of them every year. New lawn mower last year? Got it. Advertising expenses? Gottem. Problem is you still have to pay for all these and all they do is reduce your tax liability. It is such a juggling act of income/purchases/accounts receivable/etc. In the end it seems like the govt gets anything left over after all the deductions. Just frustrating.

 

[hickslawns]

Just for those of you that forgot about this thread. I am still working on my taxes. AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGHGHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You can ask Gern or Tree Monkey. I think the last couple times I talked to them that is what I was doing. I was working on them yesterday when Gern sent me pictures of his mammoth shed. I was working on them Saturday when Tree Monkey dropped off the Bog-Pod to try out. I am still working on them and just needed to vent again. I hate paperwork. I hate tax paperwork even more!!!!!!!!!!!!!!

 

[Buckmaster]

I haven't forgot about you Hicks.

I'm awaiting my K1 form from our accountant then I'll be writing out $ 5,000.00-$ 6,000.00 checks for my first quarter payment.

 

[DJK Frank 16]

Dang Phil, you better take a break!!

 

[hickslawns]

Dang Phil, you better take a break!!

Worked on them until 2am. Stopped in at TOO periodically to clear my mind and then I would get back on them. Got to sleep around 230-3am. Up around 11 this morning. Got some running done. Sold a truck. Stopped in at TOO to check in. Got my belly full with lunch and I am ready to crank on them again until I can't stand it anymore. Check books are done. Receipts/VISA statements are done up until about May. I think I can crank out the rest of much of this today. Might need to do some double checking and filing tomorrow and then set up an appointment at the accountant.

I might keep rolling and do the first quarter of 2011 as well. I am foolish for not doing this annually. I have been at it long enough I can sorta "wing it" and know where we need to be based on gross sales, equipment purchases, fuel, materials, and payroll. In all honesty, this is the work of a businessman setting himself up for failure. If I want to move forward I need to be doing this diligently every quarter. I need to be in tune with the numbers a little closer than "winging it". I shouldn't be writing quarterly checks for an extra $500-1000 based on gut instinct. Shame on me. I realize many business owners operate this way. I also realize the ones that want to follow through on their business plans with certainty instead of "hoping" are more on top of their numbers than I am. As I stated, shame on me.

 

[hickslawns]

1117PM. I need to rest the eyes. I need to attend to my wife. hehe Hopefully finish up tomorrow. Starting on August tomorrow. Today was so broken up with interruptions I just didn't finish what i should have gotten accomplished today. Oh well. I guess I won't be writing the check until April 14th anyway. haha

 

[hickslawns]

Meet with the accountant tomorrow. Wish me luck!

 

[uglykat26]

good luck phil

 

[Beentown]

Mine were not that bad this year but next year I am going to hire it out. My wife keeps me organized through the year but she has her own business and is a bit overwhelmed.

Good luck Phil!

Beentown

 

[Riverdude]

Will I ended up having to pay $12,000 to the IRS and $2,000 to State! :tantrum:

 

[Beentown]

Will I ended up having to pay $12,000 to the IRS and $2,000 to State! :tantrum:

I would be chitting a brick! Good luck buddy!

Beentown

 

[hickslawns]

Will I ended up having to pay $12,000 to the IRS and $2,000 to State! :tantrum:

Add a wife and a couple exemptions in the form of RD Jr! Hahahaha Oh wait, you got rid of the wife. Dang. I bet you would rather have to pay a little more than to have her as a dependent wouldn't you?

 

[Riverdude]

I would be chitting a brick! Good luck buddy!

Beentown

I try and set a side 30% from each pay check. Still sucks!!

 

[Beentown]

Yeah after posting that I remembered that you do the right thing and squirrel it away. I do it by quarter...still sucks.

Beentown

 

[hickslawns]

I do like RD. I have an account set aside and put a percentage in my "tax account" every time I deposit. I use it to make my quarterly payments and at the end of the year. If there is a surplus (which I haven't had in the last 3 years) I will take some out and make a contribution to my IRA. This further reduces the tax liability generally around $300 for about every grand you put into the IRA. Not sure what to make of this one. Gross sales were up dramatically in 2010. However, so were all related expenses. In the end, it looked like it was pretty much a wash. For every additional dollar we generated, 80-90% were accounted for with an expense. I am sure as gross sales continue to increase, it will be a close correlation of expenses increasing as well. Seems the more you invoice, the lower your profit margins are. Just part of the game. The bigger you get, the tougher it is to keep up your margins.