No, and I don't think you do either sm
Posted By: Lyndia on 2008-03-08
In Reply to: Per this and your previous posts, you have no - idea HOW to be an IC and do your taxes. nm
I have never ever touched doing my own taxes. Numbers are NOT my strength and I always have hired an actual CPA to do my taxes.
Back in the day when I was married, I was an IC in another line of business and taxes were never an issue. When I still had kids to deduct, it was never a problem. When I had a mortgage it was never a problem. Of course, I made $10K a year less in those days too, and I lived in a place where things like cable and electricity were higher too.
My kids are all adults now, no more deductions there. My house is 100% paid for, I owe NOTHING on it, so I can't deduct the payments, I have none. I can only depreciate things in my office. It turns out that 1) my "new" house is smaller, so heat and electricity are less and 2) rates here are about 35% less than where I lived previously.
It is called down sizing my life because it is time. It is called hitting a groove with MT where I am making really good money. IC doesn't necessarily mean you do better. You really need to examine your life before you jump into it. I was fine for about 10 yrs and then suddenly I wasn't anymore. Self-employment taxes are ALWAYS higher then employee taxes. My FICA last year was nearly $5K and as an employee, I am no longer 100% responsible for the entire amount, it is a shared responsibility. In point of fact, what I can deduct for an in-home office that I have to fund myself is not a lot different in the current situation than it was when I was an IC. My tax accountant encouraged this when I suggested it to him. Oh, and I am not a statutory employee, I am a remote employee.
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