I found out last week that I am “self-employed.” My employer labeled me as a contract laborer and I got a different form instead of a W2. I tried to file this using Turbotax, like I do every year. Because I am self-employed, I was not able to use Turbotax, unless I wanted to upgrade and pay $14.95. Last night, I decided to use the upgraded version and Turbotax would take the fee at the end of the process.
As I delved further into this process, I wanted to write off my miles, because, as you guess, my employer did not reimburse me for my mileage either. As I was filling out Turbotax, it would not let me imput my miles, I had to call for assistance. I got so fed up, that Hubs and I made an appointment with H&R Block for tomorrow (this afternoon).
Boy, are we glad we did.
We brought all of our documents and talked with a really nice lady who asked us lots of questions to make sure we got all sorts of stuff written off, like Al’s school and books for school. My office supplies for my job, etc.
Because I was self-employed, my taxes were not taken out. Come to find out, when you are employed by a company, the company matches the taxes that are taken out of your paycheck. So if you are self-employed, you owe 7.65% of what you made PLUS the other 7.65% of what your employer would have paid. Ouch. My employer did not tell me that…
Due to my situation being so complicated, it cost us $368 to talk to this lady. I know, very expensive. But here’s the kicker: I didn’t have to pay any taxes. We got a refund. How much you may ask? $1450.
$1450!!!! Plus the 10% of each paycheck for 2009 I’ve been saving in an account in order to pay back my taxes.
Now we’ve got some money for a down payment on a house!
The morale of this story is, don’t do your taxes yourself. Go to H&R Block.