Taxes

[Kerry F]

Wow, self-employment tax if you don't own a house and therefore itemize deductions is really high.  Like a 25 to 30 percent tax bracket for the average court reporting income.

Any ideas?  Incorporating then also reduces the amount of Social Security one could collect later as you pay in less.

[Kellie Zollars]

He may have a daughter in college and another on the way; but he is obviously making enough to pay for that, and you aren't the one who needs to fund it ;).  All joking aside, I don't envy you your position.

[Kerry F]

Marge,

I probably have a shorter page return than you do.  I just do a schedule C.  My accountant charges me about $400 to do my return.  But he's been a friend for years and I've sent him a lot of clients.  But his prices have always been lower than a lot of accountants.  I think what you are paying is way too high, though.

[Marge Teilhaber (TILE hobber)]

Yep, Kerry is ridic high.  I've not sent him business.  First Q out of anyone's mouth is what do I pay and you can imagine how no one has bitten.    I'm getting aggravated now.

[Deborah M.]

Marge, that's crazy to pay that much.  If he's really such a good friend, he shouldn't be charging you so much!  And if he's not such a good friend, why do you feel obligated to put his girls through college?  Sorry, but you are being taken advantage of, IMO.  My sister is my CPA and does my taxes.  It takes her a couple hours to put it all in the computer.  I'm sure it doesn't take him any longer unless he's using an abacus!

[Marge Teilhaber (TILE hobber)]

Deborah, you are so right on all counts.     What's the most, I wonder, I should be paying.  I can offer him (1) no visit, just mail and email and (2) I'll get him the stuff in February so he has more time.   He's going to have to give me a 50% discount off last year.  $700 seems to me the very max I should be paying.  I'll let you all know.

[Kerry F]

I bet he let's you go if he's got enough other clients willing to pay his fees.

[Marge Teilhaber (TILE hobber)]

That would be something after all these years (1998) but you might be right.   I need to collect more info on what others (preferably in my area) are paying to assuage my guilt.   I'm going to post this on CRVH, which is a secret group, and try to get comparables.  Thanks everyone!

[Marge Teilhaber (TILE hobber)]

I meant Jeff (my CPA) is too high but I'm sure Kerry knew that!

[Kerry F]

And I know of several reporters who have been S corps for years and it saves them in taxes.

[Martha R]

How do they save taxes by incorporating?  Can you give me any particulars?  Do they give themselves bonuses?

[Kellie Zollars]

Kelly, you don't get to deduct what your house cost, you only get to deduct the interest you pay on your mortgage.  I vaguely remember hearing something about the IRS putting a top limit on deductions for home mortgages, but didn't know it was actually put in place.  When you go to sell your house, you can deduct all those improvements from the selling price so you have less capital gains tax.  Bay Area has ridiculous housing prices.   The good part is you're not paying rent!  I can't believe what my sister who lives in Foster City pays for her very tiny apartment.  

  

[Janiece Young]

In Kansas if you have your own business you do not have to pay state income tax.  Texas and Florida also have no state income taxes regardless of whether you have a business or not.