Schedule C -- Is this right? Is H&R Block fucking me around?
 

My expenses last year outweigh my taxes by $2g's

Yet according to my H&R Block guy, I STILL have to pay taxes and I STILL have to do a Schedule C.

15% of my revenue AFTER expenses?

Is this the case with everyone else?

Have an appt. at 4pm and could be $2g poorer today

yeah you have to pay self-employment taxes ( aka social security ) and its 15.2% of your income.

Do you mean your expenses are larger than your revenue?

No matter what, you still need to pay social security and it isn't a.k.a. self employement taxes.. they are two different things.

You will need to pay taxes unless your income is less than about $8000 after losses are stripped from profits... so if you show $15000 in profit, you need to pay.

H&R block always fucks up taxes huge, get it done by a private tax broker.

One doesn't have anything to do with the other. Self employment taxes are different than income taxes. Business expense reduce your taxable income. If you have taxable income then you have to pay Self Employment taxes which you do on Scheudle SE. SE taxes are the EXACT same thing as FICA taxes ona regualr pay check the IRS just calls them something else which is stupid. Just as there is no way out of getting out of paying FICA atxes you can't get out of paying SE taxes. The only difference between FICA taxes and SEtaxes is that you have to pay BOTH the employee and the employer part since you are both your owned employee and employer. Personally I think that's unfair, but WTF can you do about it? The part of the SE taxes you pay as the employer is deductable off of your taxable income. Now that's deductable off your INCOME not your TAXES.

To be technical SE taxes are 15.3% of 92.35% of your taxable income. Or about 1/7 of every dollar of profit you earn.

ya, i went to hr block a few weeks ago and this old dude was asking ME questions like "do you need a schedule c? what would you classify your adult biz under?" etc etc

i got frustrated and left lol i gotta look up a personal accountant.

Thats the social security tax, and it is unavoidable unless you are incorporated

Get a sub s corp and next year, salary yourself out a small portion of your income (SS taxable) and bonus out the remainder.

Should've done them yourself with Turbo Tax Premier :thumbsup


Ivy

Go to a CPA with at least 10 years experience. They are like magicians who can make money dissappear and reappear. You will pay at least 250.00 an hour for a good one.