candyx, hire a better accountant ? you easily overpaid $4,000 to $5,000 in taxes from what you say. For example, you can put up to $6,000 a year into an IRA (individual retirement account), 15% of your income into a Keogh retirement account ? this money is not taxed. You are "self employed" there are many business expenses that are allowed when determining your net business income ... Get some tax accounting advice ...