Tax Fun

Since I was an Independent Contractor last year, there was no way I was going to be able to do my own taxes. So I went to HR Block. I spent 1.5 hours there with this nice old lady, we went through all my receipts, all my school info, all my FlexCar info...

And when we get done she looks at me and says I am going to owe about $2300 in Federal Taxes! Heard that and threw up a little. I found out that when you are self employed there is a flat 15.3% Self Employment Tax, no matter how much you make. This is added onto your general tax. So even though I only made like $18k and my taxable income is only $11k, my Federal and State taxes come out to almost 30%!

OUCH

And then last night I got a phone call from HR Block Customer Service. They called saying they wanted to ask me about my experience. Their only question was, "Do I have any concerns?"

I thought to myself, "Should I? That's why I went to you...."

So now I am a little scared.

NATER