@myst4au wrote:
Since 1968 (when I paid $50 in SS taxes), I have contributed a total of $169,370 in SS taxes. I started collecting in May 2021. By the end of 2023, I will have collected $102,317 and by the middle of 2024, I will have received more in payments than my total contributions. It will take the remainder of 2024 plus 2025 and 2026 to collect more than the employer's contribution. At that point, I will be 74 with a life expectancy of 12 years. I will have collected many times the money paid into SS by me and various employers.
@Rousseau wrote:
Taxes are what we happily pay to live in a civilizsd society. In the case of SE Tax, it funds Social Security payments (which most of us sill one day receive.)
@johnb974 wrote:
@myst4au wrote:
Since 1968 (when I paid $50 in SS taxes), I have contributed a total of $169,370 in SS taxes. I started collecting in May 2021. By the end of 2023, I will have collected $102,317 and by the middle of 2024, I will have received more in payments than my total contributions. It will take the remainder of 2024 plus 2025 and 2026 to collect more than the employer's contribution. At that point, I will be 74 with a life expectancy of 12 years. I will have collected many times the money paid into SS by me and various employers.
Did you take into account inflation?
@johnb974 wrote:
When they tried to make PayPal and other payment services report anything over $600, I believe they are trying to find a way to make us pay self-employment taxes on that money too.
@johnb974 wrote:
When they tried to make PayPal and other payment services report anything over $600, I believe they are trying to find a way to make us pay self-employment taxes on that money too.
@Rousseau wrote:
@johnb974 wrote:
When they tried to make PayPal and other payment services report anything over $600, I believe they are trying to find a way to make us pay self-employment taxes on that money too.
Who doesn't pay SE taxes on their MSC fees - regardless of whether they are reported by PayPal or not? (Hmmm... Does the IRS pay informant fees for turning in tax cheats?)
@johnb974 wrote:
When they tried to make PayPal and other payment services report anything over $600, I believe they are trying to find a way to make us pay self-employment taxes on that money too.
@myst4au wrote:
Since 1968 (when I paid $50 in SS taxes), I have contributed a total of $169,370 in SS taxes. I started collecting in May 2021. By the end of 2023, I will have collected $102,317 and by the middle of 2024, I will have received more in payments than my total contributions. It will take the remainder of 2024 plus 2025 and 2026 to collect more than the employer's contribution. At that point, I will be 74 with a life expectancy of 12 years. I will have collected many times the money paid into SS by me and various employers.
@olympia tennenbaum wrote:
Does everyone claim a home office? I'd think that could also help defray the taxes. I'm still looking into it and learning about it. My only concern is how it affects that sale of your home later.
@Rousseau wrote:
@johnb974 wrote:
When they tried to make PayPal and other payment services report anything over $600, I believe they are trying to find a way to make us pay self-employment taxes on that money too.
Who doesn't pay SE taxes on their MSC fees - regardless of whether they are reported by PayPal or not? (Hmmm... Does the IRS pay informant fees for turning in tax cheats?)
@olympia tennenbaum wrote:
Does everyone claim a home office? I'd think that could also help defray the taxes. I'm still looking into it and learning about it. My only concern is how it affects that sale of your home later.
@johnb974 wrote:
I wish they would raise the amount to file Self-employment taxes from $600 to $6000. The $600 amount hurts the poor and middle class.
@olympia tennenbaum wrote:
Does everyone claim a home office? I'd think that could also help defray the taxes. I'm still looking into it and learning about it. My only concern is how it affects that sale of your home later.
@ceasesmith wrote:
From personal experience, the paperwork generated to complete taxes at that time requires a professional. And even some "professionals" aren't up to it!
@BirdyC wrote:
Remember, you pay taxes on your net profit, not your gross income. For self-employed folks, expenses and other deductions usually bring your taxable income way down. When self-employed people get jittery about taxes, they often forget about all the deductions they're entitled to.
@ceasesmith wrote:
John, if $7,000 is taxable, you're $6,000 better off than if you hadn't shopped.
What's the problem?
Kinda reminds me of my friend who hit a casino jackpot for $36,000 and griped because she had to pay taxes on it. I told her to give me the $36,000 and I would HAPPILY pay the tax on it.
@johnb974 wrote:
@ceasesmith wrote:
John, if $7,000 is taxable, you're $6,000 better off than if you hadn't shopped.
What's the problem?
Kinda reminds me of my friend who hit a casino jackpot for $36,000 and griped because she had to pay taxes on it. I told her to give me the $36,000 and I would HAPPILY pay the tax on it.
If the line for paying SE is $6000, I would be keeping more of my money.
@olympia tennenbaum wrote:
Does everyone claim a home office? I'd think that could also help defray the taxes. I'm still looking into it and learning about it. My only concern is how it affects that sale of your home later.
@joanna81 wrote:
That's the reason I've never claimed full home office - I've deducted portions of various expenses like printer, ink, paper (when shopping required a lot more paper/maps, etc) but I never did the whole home office because of the future resale impact.
@olympia tennenbaum wrote:
Does everyone claim a home office? I'd think that could also help defray the taxes. I'm still looking into it and learning about it. My only concern is how it affects that sale of your home later.
@luckygirl0100 wrote:
@johnb974 wrote:
@ceasesmith wrote:
John, if $7,000 is taxable, you're $6,000 better off than if you hadn't shopped.
What's the problem?
Kinda reminds me of my friend who hit a casino jackpot for $36,000 and griped because she had to pay taxes on it. I told her to give me the $36,000 and I would HAPPILY pay the tax on it.
If the line for paying SE is $6000, I would be keeping more of my money.
I'm glad johnb974 isn't doing my taxes....
Duuuuuuuuuuude! You really aren't comprehending! Please have a professional prepare your taxes.
@luckygirl0100 wrote:
@johnb974 wrote:
@ceasesmith wrote:
John, if $7,000 is taxable, you're $6,000 better off than if you hadn't shopped.
What's the problem?
Kinda reminds me of my friend who hit a casino jackpot for $36,000 and griped because she had to pay taxes on it. I told her to give me the $36,000 and I would HAPPILY pay the tax on it.
If the line for paying SE is $6000, I would be keeping more of my money.
I'm glad johnb974 isn't doing my taxes....
Duuuuuuuuuuude! You really aren't comprehending! Please have a professional prepare your taxes.