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Taxes

April 28th, 2006 at 06:12 am

So, I thought I would elaborate more why my taxes were so high.

Last year I had three W-2s and one 1099. Up until October, I was a contract laborer with my company. And, three different people ended up paying me throughout the year. Then, working for the same company, I ended up getting hired by the staffing company that my company contracts with. It is all a bit confusing. But, to set things straight, I didn't get taxes withheld until October.

As a matter of fact, I've ALWAYS owed money. Every job I have had has been contract labor.

This year I paid over $1000 in estimated taxes, so I didn't realize I would still owe as much as I did. I just wastn't prepared. But I used a tax program to calculate my taxes. And I also did them by hand, because I thought it was high as well. But, it was correct.

When you are contract labor you are consider self-employed, so you have to pay 15% FICA. (The employee's portion and the employer's portion.) So, it adds up.

Sadly, I'll face the same issue again because with my second part-time job, which I started this year, I am contract labor again. Smile But, at least this time, I'll have money set aside.

1 Responses to “Taxes”

  1. baselle Says:

    I guess the twist is that you make more than $7500/yr. I just know that I never made enough to need to file as a teenager, I only filed to get my withholding back. I guess that dates me!

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