When is 1/4 equal to 1/6? When the government is involved.
I've been busily calculating taxes today, since they joy of “self-employment” requires me to pay taxes to the federal and state governments on a quarterly basis. I was amazed to see how much more I will be paying next quarter. There's a drastic difference, although that is because I have only been paid for one and a quarter months so far, but I will pay for four months next quarter.
Four months? You bet. Somehow, taxes are calculated for January through March, April and May, June through August, and September through December. How they got this 3-2-3-4 pattern, I have no idea. Because of this (and the fact that my “employer” is being a dick about paying me at a reasonable pace), my taxes for last quarter end up being less than $900. Next quarter, they'll add up to about $5000. Joy. At least I'm only paying taxes on 92.35% of my self-employment income. Huh?
Taxes for the quarter that just ended on August 31 are due on September 15. That's two weeks of time! Craziness. I guess procrastination and self-employment don't mix.
I'm amazed that the IRS hasn't produced more comedians.
Posted by mike at September 6, 2003 08:58 PM | Money , Work | TrackBack