Suck On That!

Free at last, free at last, thank God almighty, I am free at last!! I have been working on TAXES for the past 5 hours, struggling desperately through form after form trying to figure out how much I owe in Estimated Taxes. Apparently if tax is not taken out of your income when you receive it, the government wants you to pay the tax in quarterly installments. This is particularly applicable to those who are self-employed or independent contractors (both of which I kind of am, as of August of this year). Also, it seems that once you're self-employed, you owe twice as much in taxes because the employer and employee each pay a share, and now you're both. Fuckin' A, right?

Plus I also collected a paycheck in January that didn't have tax taken out, and didn't realize that type of thing requires you to pay the tax quarterly, rather than at the end of the year. And if you don't pay quarterly, or if you don't pay enough, the IRS hits you with penalties. So already I have a problem - I didn't pay on that earlier amount. Great.

The next quarterly payment is due September 17, so I've been working diligently trying to figure out what I owe, and what to do about the other thing I owe. There's a 1040 form for Estimated Tax, complete with a worksheet. I got it, and started working on that. But then, they wanted equal payments across the four quarters, whereas I had an amount in the first quarter, nothing in the second quarter, another amount in the third, and I will probably have a lot more in the fourth. There is something called the Annualized Installment Method, which allows for an uneven dispersal, go I got that form. That form also has its own worksheet. So I start working on the worksheet...

And it is kicking my ass. Hardcore. I keep finding different little things I need to take into account. Like, there's a self-employment deduction of half your income. Then there's a social security tax, which may or may not apply. Plus, you're supposed to only take 92.35% of your income as your net income, rather than the whole amount. Then you multiply it by crazy figures called "Annualized Amounts," for each of the different periods. I shit you not, the numbers for the different periods in one category are 0.116, 0.0696, 0.0435, and 0.029. And you've got me by the balls if you want to know what the significance of any single annualized amount is. Then, after laboring through those numbers, you subtract other numbers, multiply by more numbers, add the last two numbers together, and take the cosign of the square root of the parafractor of your mom's maiden name, then stick that up your ass and carry the seven. Apparently that's how you calculate your adjusted gross income.

But then, when you take the outcome of that whole series of events and plug it into the next chart, do I add in the income that has already had tax withheld and include that in my calculations? Otherwise I start ending up with like -$8000 in some columns. I assume the IRS isn't looking for a -$8000 payment from me at any point, and things look wrong. Subtract your exemption amount, and your education expense -- but subtract that in every quarter? I only paid that once a year, and the deduction only gets deducted once a year.....

And then my mind explodes. The IRS wants my soul. They can't have it.

I've got this chart, right? And it's getting more and more ridiculous. I want desperately to figure this out myself - I've already invested so much time, plus I'm a lawyer, I'm intelligent, I can figure this shit out myself, right? Right...I've already considered breaking down and going to H&R Block. But I'm told they want money to help me. Plus I'd have to set up an appointment, with the deadline approaching. And that could take days. Days I don't have.

So then I think "Fuck it - I just won't pay now, and I'll get hit with the penalty when I file my regular taxes." But I imagine it won't be a small penalty. Plus, I already got hit with a parking ticket today for some bullshit, and I hate (HATE) giving the government money for penalties on principle. No way am I paying a penalty.

Back to the drawing board. These are the times that try men's souls, and I will not cede mine to some incoherent IRS computations and paperwork. So, as I start working my formula again, something catches my eye in the "Who has to pay" section. I've already read it a couple times, and it almost certainly applies to me, since about 3/4 of the tax I will owe won't be withheld. I check the first condition, and it still applies to me. Fine.

Second condition, and BOTH conditions have to apply in order for me to be required to pay Estimated Tax. Number 2 is a two-parter - I have to determine if my withheld income is smaller than the lesser of either (a) 90% of my 2007 tax or (b) 100% of my 2006 tax. Obviously it's not smaller than (a) -- again, only about 1/4 of my tax will be withheld this year. However, by a stroke of luck, the amount that's been withheld this year is already greater than the full amount of last year's withholdings.

Jigga what? That means.....

FUCK YOU, ESTIMATED TAX. GAME OVER.

To the IRS, I'll see you boys in April, just like usual. And if you try to jack me on this, I'm going to get the mop out.