I met with my tax advisor today. It was not pleasant. As a Realtor, I am paid as an independent contractor and thus receive a 1099. Unlike W-2 employees, I pay my portion of income tax AND "self employment tax" which is typically paid by the employer for a W-2 employee. You really don't know how much tax liability your job creates until you pay all portions out of your own pocket (instead of out of the paycheck before you even get a chance to cash it).
I think this is probably the smartest thing the federal government has ever done. The majority of people don't even think about how much they earned vs. how much they actually get in that check. They consider the actual check amount the amount they are paid. They are happy when Uncle Sam sends them another check in February or March or whenever they file taxes. Some consider it a "bonus". It is not a bonus. It was your money all along. You loaned it to the government interest free for a year. You didn't know that because you only look at the actual check amount each week. You also didn't know your employer paid even more than that just to be privileged to buy your labor. If everyone was responsible for writing a check to the feds each quarter, instead of it occurring automatically each paycheck, I guarantee we would have a more efficient system. Government waste would offend more people. I take it personally now because I know how much I pay in. I look to see where my money goes. I am aware because it hurts me personally to pay it.
I don't mind paying taxes. Really, I don't mind. I am thankful that I live in a country where I can earn a great living. I want to pay for the services I get--defense, roads, schools, etc. I just don't want to overpay for anything. You know that feeling you get when you buy something for $100 and then go into another store and see the same thing for $75? I feel that way when I think about government spending my tax dollars. They pay $125 for something I can get for $60. It makes me angry. Ok. I am done with my rant. Writing really is therapeutic. Have a nice day.
Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts
Wednesday, December 12, 2012
Wednesday, December 29, 2010
Random Year End Wrap Up
So, this is going to be quite an eclectic, scatter brained blog. I have so much to tell and so many cool things going on! I also have a rant building up that I just can't avoid!!!
Plarn--so today I met the mom of the person renting our other house. She was quite a unique lady!! She introduced me to a wonderful product she calls Plarn. Basically, she takes plastic bags (like grocery store bags) and cuts them into strips. She then weaves things out of them. She gave me a little mat of the stuff that she says is great for scrubbing pots and pans. she then showed me a picture of a KING SIZE bedspread she made out of the Plarn. She also had a purse made out of it and two huge laundry bags. I told her she needed to set up an ebay store and she said that she only gives it away. It was so cool. She had a little beret that she made for her granddaughter. She uses different colored bags to make patterns and everything. I was very impressed.
New House--Well, we moved. We are in the house and are in the middle of making several fairly lengthy renovations. First up is the kitchen--we are totally re-doing it. Cabinets, flooring, appliances, countertops, the works. Its pretty exciting but stressful at the same time. One of our first big "oh NOs" happened yesterday morning when Cindy woke up to find no water in the house. We assumed something froze so I spent the next few hours trying to figure out what froze. Finally Dad came over and discovered the water line running into the house was only about an inch under dirt right where it comes in. Totally unacceptable!! I foamed in the hole and covered it with about a foot or more of straw until I can get more dirt on it.
Gutter Helmets--here is a tip for you homeowners--don't get gutter helmets. I don't know all the brand names and such but basically I am talking about the little caps that are placed over the top of the gutters in order to keep leaves out of the gutter. The screens are a little better, but not much. The house we just bought has these caps on them. In a light rain they work great. In a heavy downpour, the rain just washes right over them. This has caused the dirt around our house to settle and wash away and almost all of the foundation is exposed. This also allows water to settle against the blocks (and slowly creep into the basement--not good!).
Success--2010 was a very good year for me business-wise. I started selling real estate in September of 2009. I sold one house in 2009. I sold 15 in 2010. I more than replaced my teaching salary in my very first year. Additionally, I had fun doing it! I got to help people with a very daunting task and I got to know some really awesome people in a way that would definitely not happen if I was still teaching. It was not all perfect, there were some downs. But the ups FAR outweighed the downs. Funny how God does that isn't it. He took what appeared to be a very bad thing (the first time I got fired, ever in my entire life) and gave me the drive and path to make a career for myself.
Bigfoot--so Santa got Jonas one of the coolest toys ever made. You probably saw it at Target in the little plastic box. It is Bigfoot. Bigfoot does flips, throws tantrums, sleeps, excercises, plays ball, cuts the cheese, and all manner of other stuff. So far, my dad and Derek Hickerson have enjoyed it more than Jonas. In fact, Jonas is actually scared of the thing. He will not touch it if it is turned on.
Taxes--Ok, my last random point. The smartest thing the US government ever did was to have employers take income tax directly from employee checks. This process almost completely detaches emotion from the taxpayer. In fact, most Americans are so detached that they are HAPPY when they get a return. In other words, because the system is so complicated, you were not able to calculate exactly what you owe and thus you paid too much to the government (AKA lent them money interest free) and the government is going to give it back to you and you will be grateful for it. I am learning a valuable lesson in my new adventures of self-employment. You really don't know how painful it is to pay income taxes until you are self employed. I had a cashiers check made today for my quarterly filing. I actually felt physical pain because of it. I understand that I have to pay my share and that I benefit from living here. I am ok with paying a reasonable tax. I am NOT ok with so much of the frivolous and wasteful spending of the money that I (very painfully) sent in. I never felt this strongly about it when the money was never in my possession to begin with. Now that I see my bank balance decrease by 4 figures (and I know it is much higher for some) once a quarter, I can actually feel the pain. Very strange indeed. Very much an eye opener!!
Plarn--so today I met the mom of the person renting our other house. She was quite a unique lady!! She introduced me to a wonderful product she calls Plarn. Basically, she takes plastic bags (like grocery store bags) and cuts them into strips. She then weaves things out of them. She gave me a little mat of the stuff that she says is great for scrubbing pots and pans. she then showed me a picture of a KING SIZE bedspread she made out of the Plarn. She also had a purse made out of it and two huge laundry bags. I told her she needed to set up an ebay store and she said that she only gives it away. It was so cool. She had a little beret that she made for her granddaughter. She uses different colored bags to make patterns and everything. I was very impressed.
New House--Well, we moved. We are in the house and are in the middle of making several fairly lengthy renovations. First up is the kitchen--we are totally re-doing it. Cabinets, flooring, appliances, countertops, the works. Its pretty exciting but stressful at the same time. One of our first big "oh NOs" happened yesterday morning when Cindy woke up to find no water in the house. We assumed something froze so I spent the next few hours trying to figure out what froze. Finally Dad came over and discovered the water line running into the house was only about an inch under dirt right where it comes in. Totally unacceptable!! I foamed in the hole and covered it with about a foot or more of straw until I can get more dirt on it.
Gutter Helmets--here is a tip for you homeowners--don't get gutter helmets. I don't know all the brand names and such but basically I am talking about the little caps that are placed over the top of the gutters in order to keep leaves out of the gutter. The screens are a little better, but not much. The house we just bought has these caps on them. In a light rain they work great. In a heavy downpour, the rain just washes right over them. This has caused the dirt around our house to settle and wash away and almost all of the foundation is exposed. This also allows water to settle against the blocks (and slowly creep into the basement--not good!).
Success--2010 was a very good year for me business-wise. I started selling real estate in September of 2009. I sold one house in 2009. I sold 15 in 2010. I more than replaced my teaching salary in my very first year. Additionally, I had fun doing it! I got to help people with a very daunting task and I got to know some really awesome people in a way that would definitely not happen if I was still teaching. It was not all perfect, there were some downs. But the ups FAR outweighed the downs. Funny how God does that isn't it. He took what appeared to be a very bad thing (the first time I got fired, ever in my entire life) and gave me the drive and path to make a career for myself.
Bigfoot--so Santa got Jonas one of the coolest toys ever made. You probably saw it at Target in the little plastic box. It is Bigfoot. Bigfoot does flips, throws tantrums, sleeps, excercises, plays ball, cuts the cheese, and all manner of other stuff. So far, my dad and Derek Hickerson have enjoyed it more than Jonas. In fact, Jonas is actually scared of the thing. He will not touch it if it is turned on.
Taxes--Ok, my last random point. The smartest thing the US government ever did was to have employers take income tax directly from employee checks. This process almost completely detaches emotion from the taxpayer. In fact, most Americans are so detached that they are HAPPY when they get a return. In other words, because the system is so complicated, you were not able to calculate exactly what you owe and thus you paid too much to the government (AKA lent them money interest free) and the government is going to give it back to you and you will be grateful for it. I am learning a valuable lesson in my new adventures of self-employment. You really don't know how painful it is to pay income taxes until you are self employed. I had a cashiers check made today for my quarterly filing. I actually felt physical pain because of it. I understand that I have to pay my share and that I benefit from living here. I am ok with paying a reasonable tax. I am NOT ok with so much of the frivolous and wasteful spending of the money that I (very painfully) sent in. I never felt this strongly about it when the money was never in my possession to begin with. Now that I see my bank balance decrease by 4 figures (and I know it is much higher for some) once a quarter, I can actually feel the pain. Very strange indeed. Very much an eye opener!!
Wednesday, January 6, 2010
Taxes
So I sat bolt up-right in bed last night at about midnight and went "OH CRAP!!!" I couldn't remember what date my property taxes were due. I knew that I got the notice in October and I knew I didn't have to pay it until the first of the year but I didn't remember how long I had. Honestly, I had not even opened the envelope yet. So, with a surge of panic-induced adrenaline, I went to the office and opened those envelopes up (one for Smyrna and one for Rutherford County). With a sigh of relief, I saw that they are not due until February. Ahhh, it's nice when procrastination does not ruin your day!
On another note, I started calling my SOI today (thats Sphere of Influence for you noobs). It is one of my business resolutions to call every single person on the SOI before the end of February. Interesting thing I have noticed though, a lot, I mean A LOT of people have dropped their home phone numbers! I erased at least 6 (out of 20 calls) home numbers because they had been disconnected. I guess most people are moving toward a mobile only existence. I am not sure how I feel about this. It is interesting.
And finally, I am in a community theater play! We are performing "The Curious Savage" by John Patrick. Show dates are March 11-13 and 18-20. Stay tuned for ticket info. The cool thing is, we are putting it on way up on the 14th floor of the NHC building in Murfreesboro (the lone skyscraper). I am playing Titus. I would recommend checking the play out. It's pretty funny. Oh, and no, I have never been in a play before.
On another note, I started calling my SOI today (thats Sphere of Influence for you noobs). It is one of my business resolutions to call every single person on the SOI before the end of February. Interesting thing I have noticed though, a lot, I mean A LOT of people have dropped their home phone numbers! I erased at least 6 (out of 20 calls) home numbers because they had been disconnected. I guess most people are moving toward a mobile only existence. I am not sure how I feel about this. It is interesting.
And finally, I am in a community theater play! We are performing "The Curious Savage" by John Patrick. Show dates are March 11-13 and 18-20. Stay tuned for ticket info. The cool thing is, we are putting it on way up on the 14th floor of the NHC building in Murfreesboro (the lone skyscraper). I am playing Titus. I would recommend checking the play out. It's pretty funny. Oh, and no, I have never been in a play before.
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