• Paying back the government

    "Living and paying taxes in Minnesota is very expensive. so my stimulus went to pay off the $7,700 loan I took out to pay my state, federal, and SS taxes. (and I make under 24,000 yr.) It sucks being self employed. "

    Gabe Johnson, 21, Tile installer
    Park Rapids, MN

    3rd Jun 2008 in Debt/Credit Card | Discuss (5) |

Comments

  • Are you stupid or something? You wouldnt need to take a loan out to pay your taxes if you withheld taxes from each paycheck like every other American. If you make 23k a year, thats a 33% tax rate...which is not above and beyond the average tax rate. Also, if you're planning on voting for Obama, you'll be taking a much larger loan out next year to pay higher taxes.

    Posted by: tax man Jun 4th, 06:50

  • For calling yourself "tax man," you obviously don't know too much about taxes. Didn't you see that he's self-employed? He doesn't get a paycheck. (though, he SHOULD have saved money himself to pay taxes -- duh).

    And your "tax rate" is waaaaay off. Taxes are 10% up to $7825, and 15% from $7825 to $31850. So his marginal tax rate is 15%.


    And the Obama dig may be true (higher taxes) but there will also be lower costs to go along with that. Not that we notice the cost of the Iraq war anyway, since the Chinese are loaning us all the money for our grandkids to pay off, thanks W! I prefer "tax and spend" over "borrow and squander". At least we'll get something useful for the taxes we pay.

    Posted by: Poopyhead Jun 4th, 08:49

  • Actually, to both of you, it had nothing to do with a paycheck; when self-employed, you are required to pay estimated taxes. If you make a certain amount, you MUST pay estimated taxes or you can be charged a penalty as well.

    I had to pay more than the standard tax rate due to a penalty when a stock transaction netted me a $75k windfall. When DGS was acquired this year and paid out $80k, you better believe my ass was making estimated tax payments in that quarter.

    Long story short, being self-employed doesn't mean you don't have to pay taxes until the year's end. And you're an idiot for not estimating them yourself and having to take a loan.

    Posted by: estimation is your friend Jun 4th, 09:09

  • I agree with estimation....this guy should have been holding taxes out of his earned income in a savings account so it would be available to pay his fair share come tax time.
    And to poopyhead...you are just that.

    Posted by: Stimlin Jun 7th, 17:49

  • Hey,

    At least you have AL FRANKEN to look forward to.

    He didn't pay his taxes either.

    Posted by: hicadence Jun 9th, 09:43

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