Anyone else in a crappy loophole like me can hopefully show me some love...I hear I have to pay 15% taxes instead of 10% comes to about (2 grand! A lot for me)... JUST because I'm an independant contracter! NEWS FLASH ppl independant contractor does not EQUAL rich! I'm only a dogwalker and do not own my own company so why am I paying like I do. If I hear one more rich person whinning about paying more taxes I'm going to puke!!!
2007-04-07 13:48:54 · 4 answers · asked by babebear 2 in Business & Finance ➔ Taxes ➔ United States
I'd like to know WHERE my moneys going so please try to make me feel better on that one!
I'm 24 so by the time I'm old enough to benefit from social security...they say it will have crumbled....anyone else feel ROBBED by our government say AMEN!!!
2007-04-07 13:51:41 · update #1
No, as an independent contractor, you'll pay your regular income tax PLUS 15.3% self-employment tax, which goes for social security and medicare. If you had been working as an employee, half of the social security would have been deducted from your paycheck, and your employer would have been responsible for paying the other half. As a self-employed person, you ARE your employer so you pay both halves. It's the same money, just coming out at a different time, and for the employer match, from you since you are your own employer and there isn't someone else to pay it.
Rich or poor has nothing to do with it.
2007-04-09 20:21:57 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Sounds like you're self employed, in which case perhaps you didn't have anything withheld? A "rich" person would not be in the same tax bracket as you; they'd be paying 35% instead of your 15%. Self employment will hit you at tax time if you haven't made quarterly payments. The US tax code is not a flat tax, so not everyone pays the same percentage. The percentages go up with income.
2007-04-08 03:02:31 · answer #2 · answered by Laura V 2 · 0⤊ 0⤋
But, the difference is, the rich guys know how to manipulate and invest their income, to where they pay a lower tax rate, than other people, that don't know about it! Learn about taxes, learn about investments and real estate, and you'll see what I'm talking about!
2007-04-08 08:18:03 · answer #3 · answered by musicman 5 · 0⤊ 0⤋
To me, it sounds like you didn't pay your estimated quarterly taxes.
2007-04-08 00:46:58 · answer #4 · answered by T H 4 · 0⤊ 0⤋