But the worst part is I thought I’d be getting money BACK with all my tax stuff this year :( Only cuz my accountant literally told me I’d be receiving $4,000+ thinking I had over-paid the whole time, then realizing they had failed to include a pretty important piece of paper in their calculations – the Paypal 1099 (a new thing they began doing). And since it showed an “income” of almost $50,000 last year due to Love Drop transactions (which of course we gave away to all our recipients), it completely changed the whole outcome here.
Not the biggest deal since I truly owed it to begin with, but def. a swap of emotions within a 24 hour period ;) And it’s hard to complain much anyways considering we had a killer year of business profits when all was said and done. Turns out we brought home over $130,000 from all my online projects this year, compared to 2010’s $80,000 record! (Though I did have a 9-5 back then too which pushed us even higher). So obviously this is all a good problem to have. Especially for my first year being self-employed :) (Can you believe it’s been over a year already??)
Anyways though, here’s the recent damage with the tax situation:
- Federal: $3,156
- State: $2,587
- Personal Property Tax (for my LLC): $300
- Tax preparation: $655 ($355 for personal, $300 for Love Drop)
- State of WI: $114 (owed to me – woo!)
Yet another reason why it’s good we had so much cash stashed away! For all those who have been questioning my Net Worth updates recently ;) I’m just freakin’ glad this tax season is over once and for all – I can’t tell you how much I hate it. I’m totally cool with paying my fair share of what I owe (and for the record this was the 1st time in 8 years my accountant slipped up), but the whole thing just gives me the creepers. I wish it would just magically file itself every year and save us the trouble ;)
Oh, and here are my new quarterly payments going forward too now:
- Federal: $6,250 (up from $4,500)
- State: $1,750 (up from from $1,000)
It makes me miss the good ol’ days of automatic paycheck-deductions and HR departments… something you lose when you switch to being self-employed. But what are you gonna do, eh? Can’t stop trying to make more money just cuz you’ll owe more. Just means you gotta keep pushing even MORE to make enough to cover all the taxes too! ;) And the more any of us do that now – while we’re young and full of vigor – the less we’ll have to rely on ourselves later!
How did you all come away this year? Anyone have to pay MORE than my $6k? Anyone get $6k+ BACK from the gov’t? I know the gurus say that’s bad cuz it gives them a “free loan” over the 12 months and all that, but it’s still a much nicer surprise than the opposite (as you can see from today’s post). So if you happen to fall into *that* boat this year, I give you a mighty pat on the back, and ask you to treat yourself to something nice for me this round. Sound good?
PS: Stay tuned for my SEP IRA update… that’ll be another chunk of change used up to help soften the tax situation (but at least THAT $$ goes back into the bank of ourselves! And it’s kinda fun ;))
(Photo by bradleygee)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!