Wednesday, March 12, 2014

Taxes for 2013

We filed our joint taxes last February 20th. Before going to H&r Block, hubby and I knew that we won't get back an amount like we used to when he was in school and not working a job. I was shocked however of how much Social Security contribution I have to pay. Since I am a self employed, I don't pay my SS contribution until I file my tax.  It's sad too because I don't think I will be able to enjoy social security when I am old enough because  by then I assumed that SS will be broke and won't exist anymore.  Oh well.
Since my husband  earned  more last year and I also earned more from blogging, we lost our earned income credits that's why we got back less.  I guess "the more you make, the more they take".  The lady who prepared our taxes said that 8 more thousand and we will be in the next bracket of  tax.  Right now, we are paying 15%, the next bracket will be 25%, oh boy!  You can never win.  You desire to make more to  provide for your family but there is a downside to that, you also pay more taxes of what you earned. BUT, we'd rather  work and pay taxes than  not work and ask for assistance.

So after the deduction of taxes, we got back $409.66

  • H&R Block fee - $496.37
  • Bank Fee -$ 34.95
  • State Tax  - $138
  • Self Employment  tax (SS)  - $1,578
  • Self Employed Tax (Federal Tax) - $789
MOst of the online companies that I work with said that the third party which is the paypal,   will be responsible  for  supplying the tax document (1099) we need.  According to Paypal, they won't supply this doc   unless we make $20k which I doubt I would since I don't hire any consultant to do some job haunting  for me, what's the point?  So my resolution to this is to print my monthly report from paypal, I would use for next tax season.

Alrighty, till next tax time.  I gotta go to school today.  See you later peeps.  Thanks for  leaving your trails through comments.