Most employees are lucky when it comes to taxes. I know, it doesn’t feel like you’re lucky. However most don’t realize they are only paying half of their social security and half of their medicare taxes. Your share is only 7.65%. Your employer has to pay 7.65% also.
However if you’re self-employed you need to pay 15.3% This is on top of state and federal taxes.
On top of that, you have to pay an estimated tax quarterly. If you didn’t make more than $1,000 in that quarter, I think you are exempt. So don’t be afraid if you are just starting out.
I just had my taxes direct withdrawn, it’s enough to make a grown man cry.
I paid over $19,000 to the state and federal government. For reference, my first car, a 1988 Chevy Spectrum 4-door cost me $800. This is just for my affiliate earnings and has nothing to do with my normal 9-5 job.
To add insult, I don’t think I’ll qualify for my $600 check this year. I paid a crazy amount of taxes, but get no love. Perhaps George Bush will see it in his heart to give me a lovely brick of government cheese.