You see, unlike my last employment stint, where I was being paid by an agency, this is actually a consultant position. Each week, instead of a time sheet, I have to submit an invoice. They are not taking out taxes. I have to pay these on my own.
I've been trying to research how consulting and taxes work, but I am seriously CONFUSED. This is beyond my comprehension.
I think I am supposed to pay quarterly self employment taxes, an estimate of what I think I owe, but I don't really know how to do that. I think I am able to take deductions, but I am not sure what they may be.
I have calls in to my financial advisor, Rae (who is amazing BTW. I wouldn't have made it through this incomeless year without her. ) and an accountant that I used in the past. All I know is that this is going to cost me.
They say, "Ignorance is bliss." And to be honest, I could do without having to know about this kind of stuff. But I also know full well, that ignorance can not be used as a defense from good old Uncle Sam. So I better get this sorted out.
I'll share what I learn.
Today's quote:
“Since fear is mostly about ignorance, the best part is that it's as temporary as you choose.” - Christine Comaford
I hears ya, sister!
ReplyDeleteI freelanced for years in publishing, and I basically just assumed half of my money would go to Uncle Sam for taxes...so whatever invoices I was submitting, I'd figure that I should really only consider half of it as real income, and save the rest for taxes.
Which works in theory. Until the check comes and you think, yeah, I'll worry about taxes when it's time. :-)
okay....I can do that, but did you file quarterly???
ReplyDelete