And while it's never happened to me, having income shifted from a W2 to a 1099 seems really unfair.
It happens. It was a client that had set me up though an employment agency for a few gigs, and then the next year they changed the way they were doing things and I just directly invoiced them for the work. It ended up being about $10,000 that moved over to 1099 that year. The amount of income I make on W2 is pretty small. At this point it is really only a small amount from some schools where I teach a class or two. The upside is that I end up claiming a lot more mileage on my cars since anything that is done on a 1099 I can claim, where W2 is seen as commute and can't be claimed.
What Matt said. I looked at the interest I earned for a tax refund I'd put into a savings account for a year. $17. I don't mind paying the government less than 5 basis points to hold onto my savings for me.
It happens.
Owing a lot of tax just makes me feel really irresponsible - like I was living it up and not burying my acorns for the winter months. But obviously that's not true. And I know it's not but it is enlightening (and sad) to see how responsible people can get so screwed by the tax laws.
The year I was a consultant for six months and didn't pay any estimated taxes (or put aside the money, even), I definitely felt like a jerk. But I would be much more conservative if I were doing it permanently -- at least, I would hope I would be.
But until this year, I have definitely been pretty financially irresponsible with pretty much every decision I've ever made, so.
Oy, this is upsetting. Michelle Shocked was playing at Yoshi's in SF last night, and she went on a homophobic rant in the second set. Much of the crowd walked out.
Same with me, Sophia. People tell me that it's just giving the government an interest-free loan, but the interest I'd earn on it these days is so small that if I forgot to put it aside a single pay period (and knowing myself I'd forget a lot more than one) I'd have less saved up at the end of the year. With it set up as witholding I can't forget to put the money aside and spend it on a new frying pan or DVD purchase..
Yeah, I'm actually okay with that deal. And very happy I don't have to deal with 1099s or estimated payments.
meara gone, sad now. Except I spent most of the day on the beach with a beer in one hand, kindle in the other, and a dog sleeping on my foot. So that helped.
I don't know who Michelle Shocked is, but good on the crowd for walking out. Yoshi's also shut down her mic and offered refunds.
K-Bug turns 23 next week (!!!!!) and wants a big family dinner. So I'm back in the position of trying to pick a restaurant KCD will go to that isn't Applebee's or MacDonalds. Grrrrrrrrr.
I don't know who Michelle Shocked is
She had a minor hit about twenty years ago with a song called "Anchorage" (about getting back in touch with an old friend who'd moved to Alaska), and has a number of rather excellent albums of the folk/rock/punk variety. I've always really liked her, she's a great song-writer, and it's a real shame she's gone off the deep end with the homophobia.
I had her Arkansas Traveler cd and really liked it. It looks like she's now part of a Pentecostal Church, and they are traditionally anti gay and very conservative.
People you can be born again and not a bigot! Find a better church!!
