The Tax Man Cometh
I cannot tell you how much I dread tax season. No, dread is not strong enough a word. It’s the only time of year I feel inadequate, underemployed, broke, broken, terrorized, claustrophobic and under a huge microscope. I’m nowhere near a math person (hence the writing career – it’s more of avoiding what I’m bad at rather than sticking with what I’m good at). So it’s with all those emotional entanglements that I face the 1040 and the Schedule C.
Can anyone at ALL explain to me why you get three lines into the 1040 when you realize you have to fill out a different form before proceeding? Oh, and in that form, you must once again jump to yet another form, which also requires you to complete the worksheet… I hate it. I can handle a straight 1-through-77 step process that is the 1040. What I cannot do is juggle multiple forms, do math (insert shudder here) and be expected to get the correct answer. I’m an English major – my brain isn’t wired for this.
This year, I got smart. I started with Schedule C. Who knew it would make the process easier? For nowhere in the tome that accompanies my forms (bless you, IRS, for at least providing the instructions, but could you please provide instructions for ALL lines next time?) does it state that if you complete this form before that form, you’ll have an easier time of it. That’s what’s lacking – a step-by-step process on how to go about presenting a self-employed existence on paper.
I did find an excellent resource for self-employed folks like me who struggle with the beast every year. One of my problems with Schedule C is the lack of clarity on certain line items – a problem that has prompted the IRS love letters I get months later adjusting my totals. Thank you, National Association for the Self-Employed, for the easy-to-follow guide to filling out Schedule C. It was a godsend when I came to line 18 and said “WTF does this mean?” (For tax time, folks, brings out the potty mouth in me – I’ve found it’s much easier to recover from a cursing jag than a crying jag)
I did begin using Quicken to track my expenses and income. It’s nice, but it’s far from a perfect setup. I wanted to do numerous functions that the system wouldn’t allow me to do. I wanted categories to coincide with my line items on Schedule C (see? I did do some advance planning). Unless I just don’t know how to do it properly, it seemed my program doesn’t allow that.
Maybe I’m behind the curve. Frankly, I don’t make knowing my tax forms and my tax filing process part of my life. It’s that time of year when I stop buying groceries in order to cover whatever tax liability I’d missed, and when I make an appointment with the hair salon to get rid of the gray that will surely come from it all.
Now the only thing left to do is mail it. After I finish my prayers….
Good for you.
My friend suggested Excel rather than Quicken — she says it’s more flexible. I’m still trying to figure it out, but I could put the two of you in touch if you’d like to e-chat about it.
My Excel wasn’t getting me anywhere! I had that for years before I realized I wasn’t disciplined enough to work with it properly. :))
Lori, Lori, Lori—this is why people hire accountants! Seriously—it saves you money.
😉
Even I (who have a professional background dealing with taxes) think the 1040 and its associated schedules are illogically set up for the self-employed. A few years back, I also learned to tackle the schedules first. Of course, just when we all figure it out, that’s when they’ll change everything and we’ll have to start all over again!
I jumped on the Turbotax bandwagon when it first came out with only a one-year slip. I loved it when you could fill out the forms directly, but then they took away that ability and went to the “interview” type of functioning. Takes so long, but it’s really thorough, help is available at your fingertip, and it never made a mistake. I’ve also used Excel for keeping track during the year, and I use Quicken for personal finances,too.
Lori, hire a CPA next time. Your stomach will thank you. 🙂
Hi Lori
In response to a challenge by Laura of Writing Thoughts I’ve done a post on the ghostwriting topic kicked off by Devon. It seems to be sparking debate around various writers’ sites.
It’s been an interesting discussion, and reading your comments on the topic, has helped me learn more about how a ghostwriter works.
I cited you as an example of a good ghostwriter to hire.
Thanks for the insights.
Yvonne
Grow Your Writing Business
The bad news is, you’ve got to struggle through self-employed writer’s tax forms. The good news is, you’re a self-employed writer!
Yeah, taxes are truly a pain. I really wish we’d switch to a national sales tax or something and do away with the IRS and filing every year.
On another note, I’m watching TV Sunday night and suddenly realized that I totally forgot about my taxes.
First time that’s ever happened. So I guess I’ll have to pay a penalty on top of what I already owe.
Mike, you still have today!! The filing date is April 17th. Get busy!!
It’s absolutely amazing what happened to me when I finally hired a pro… my taxes are done… a couple of months ago… minimum stress… should have done it years ago… it’s his job to figure it out, not mine.
Anne Wayman
http://www.thegoldenpencil.com