Tax Time Coming Up!!

Maxgoof · Post by **Maxgoof** » Thu Mar 02, 2006 7:54 am

As you know, April 15th is right around the corner.

And our hero, Ralph Hayes, who spends all his time entertaining us, has taxes to pay.

Now, the income tax part is not a problem. At his level of income, he doesn't have much in the way of taxes to pay.

The problem is the self-employed tax. See, every employer, even yourself, has to pay Social Security and Medicare Tax. And, being self-employed, he has to pay not only the part that most of us see in our paychecks, but also the part we don't see that the employer has to pay.

My initial estimates show that this amount is over ONE THOUSAND DOLLARS!!

We need to donate money to help this guy cover his taxes, and the sooner we do it, the better!! Give now!!

Oh, and Ralph....you gotta start making quarterly estimated tax payments. It would require you to pay only one quarter the amount you have to pay in April, but four times a year, in January, April, July, and October.

It would make budgeting much easier.

Tom Mazanec · Post by **Tom Mazanec** » Thu Mar 02, 2006 8:54 am

Interesting...and absurd. IIRC, I've already sent Ralph fifty or sixty dollars, and I work in a non-profit group home, so cannot keep buying merchandise and sending contributions for a webcomic much more. A self-employed person like Ralph should pay based on what he makes, even these deductions. One thousand dollars, given the level of donations he receives, is insane.

Maxgoof · Post by **Maxgoof** » Thu Mar 02, 2006 12:33 pm

Tom Mazanec wrote:Interesting...and absurd. IIRC, I've already sent Ralph fifty or sixty dollars, and I work in a non-profit group home, so cannot keep buying merchandise and sending contributions for a webcomic much more. A self-employed person like Ralph should pay based on what he makes, even these deductions. One thousand dollars, given the level of donations he receives, is insane.

I'm working to try and find him more business deductions.

You have to realize, though, that the Social Security rate is 6.2% and the Medicare rate is 1.45% for a total of 7.65%.

Now, Let's say his net income is supposed to be X dollars. this means that if his gross income was Y, then X = Y - (Y * 7.65%) or X = Y * (1 - 0.0765) or X = Y * 0.9235 or X / 0.9235 = Y or X * 1.082837 = Y

Now, remember, he has to pay the employer Social Security and Medicare taxes as well. So, he has to pay an additional Y * 0.0765 in taxes. So his total income of Z has to equal Y + Y *0.0765 or Y * 1.0765.

Now, let's put X back into the equation so we can find the actual Social Security and Medicare Tax rate:

Z = (X * 1.082837) * 1.0765 = X * 1.165674
Z / 1.165674 = X
Z * 0.8578727 = X

The tax rate is therefore 1 - 0.8578727 or 14.2127%

Ralph, I would recommend setting aside 15% of every dollar you earn to pay your quarterly taxes.

UncleMonty · Post by **UncleMonty** » Thu Mar 02, 2006 9:21 pm

Almost 15%?
I hope his state doesn't have an income tax. You generally have to pay that at the same time as the Federal tax.
My state's sales tax (about 8%) is bad, but it's spread over the entire year.
Hmmm...
I'm going to have to look into my finances.

Tom Mazanec · Post by **Tom Mazanec** » Thu Mar 02, 2006 9:25 pm

Well, he said "state taxman'...

T.s.a.o · Post by **T.s.a.o** » Thu Mar 02, 2006 10:12 pm

well, this mother's day and father's day specials should help all that...man I want to get one

internal voice wrote:you shouldn't frivoulsy spend your school's financial aid

but all that is currently going for snacks anyway....

internal voice repeats itself wrote:"

*sighs*....

Maxgoof · Post by **Maxgoof** » Fri Mar 03, 2006 6:07 am

UncleMonty wrote:Almost 15%?
I hope his state doesn't have an income tax. You generally have to pay that at the same time as the Federal tax.
My state's sales tax (about 8%) is bad, but it's spread over the entire year.
Hmmm...
I'm going to have to look into my finances.

West Virginia does have an income tax, yes, but it, like most state income taxes, has a personal exemption, which cuts the amount he owes them substantially.

Social Security and Medicare are taxed from dollar one. In fact, Social Security stops taxing the dollars after about 93,000 or something.

If I wanted to help close the gap on Social Security that's the first thing I would do, is remove that cap. Tax it all the way up to the millions. I'd only do this in conjuction with a system of private investment.

True, they don't get the benefits of Social Security, but they don't get the benefits of a lot of other things reserved for "the poor" that they have to pay for, such as EIC, even personal exemptions. Why, they even have an alternative minimum tax to make sure you don't shelter all your income from taxation.

My point being that the social security tax could be one of the fairest taxes around. Flat rate, no matter how much you make.

But back to the point, Social Security and Medicare taxes are the brunt of the amount Ralph owes, and he really could use a hand here.

Tom Mazanec · Post by **Tom Mazanec** » Fri Mar 03, 2006 8:08 am

Both my parents are dead, but the rest of my family, especially a couple aunts, has been very helpful to me. How does the offer work? Do you pick what you are depicted as (guess my choice)? Do you specify what it says or what you are doing? I would like some more info on this, so I can send a "card" to "my family".

Dapple · Post by **Dapple** » Sun Mar 05, 2006 8:43 pm

My finacial situation is pretty good right now, and I want to make a dontation,
BUUUUT if I give RH $120.00 than I want something for it. I want a couple pages of mini comic showing my favorite scene from the between worlds RP. Black and white starting from when Rain heads to his cabin onbourd the Menos after dinner, and ending with Kathrin embrasing him telling him its all right. Well that's the image I get in my head. Will go as high as $160.00 maybe $180.00, but thats too much to just give away, at least for me. Am I stingy?

RHJunior · Post by **RHJunior** » Mon Mar 06, 2006 1:04 am

You're wanting to commission that scene drawn up? It's certainly workable.

Dapple · Post by **Dapple** » Mon Mar 06, 2006 7:28 am

RHJunior wrote:You're wanting to commission that scene drawn up? It's certainly workable.

Really because there is alot of work involved designing the charecters apperance designing the background, "I don't beleave you shown us what the lower decks and cabins look like in a luft ship, but I just have to see the FUBAR reaction from Rain as he experiances Kenning for the fist time.
OK ok lets talk deal here, I don't think you will be able to fit it all on one page, perhaps two or three though seems workable, I asked for B&W becaus I don't want you spending too much time on it. Next is I would like to get Aurrin, and Astral's permision to use there characters first, I don't want them to be mad at you or I after the fact. Next after that is I would like to see it on the CD, eather this year or next however that works....So what the damage, it's just gonna keep nagging me in my head till I do this sigh.

Tom Mazanec · Post by **Tom Mazanec** » Mon Mar 06, 2006 8:16 am

I just sent in for a card.

StrangeWulf13 · Post by **StrangeWulf13** » Mon Mar 06, 2006 9:52 pm

Dapple, may I recommend that you PM Astral and Aurrin? You're much more likely to get their attention that way, since they probably have things set up to let them know when they get one.

Kinda makes your thread on asking them for permission a moot point, but whatever works.

You can use Adam in any scene if you like, so long as you give credit to me. I want my 10%, darn it!