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Old 05-03-2016, 10:00 AM   #117 (permalink)
redpoint5
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Location: Oregon
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Quote:
Originally Posted by Xist View Post
Considering she followed me to my car and demanded that I talk to her, I do not think she was attempting to sever ties.
Of course not. I've never known a woman to cease communication entirely. That's why I'm the one that enforces the no-contact strategy of living drama free.

Quote:
I work as a contractor, so I deduct my mileage from my taxes. As I understand it, I only pay 15% taxes until I earn more than $30,000 in a year. If I average four clients a day and drive forty-one miles between my first and my fifth, if I work two hundred days a year, I have a $4,500 deduction, right?

(41 * 200 * .55 = $4,510)

Wait a second...
As I understand it, the mileage deduction is a reduction in taxable income that applies regardless if you take the standard deduction or itemize deductions. 15% of $4,510 = $677.

Below is the tax bracket for 2015:



You are taxed at 10% on the first $9,075 of taxable income. The 15% tax only applies to the amount of taxable income over $9,075.

At any rate, you should be taking the mileage deduction. I use freetaxusa.com to do my federal taxes for free. The prompts make it easier to take all of the applicable deductions and credits, because the paper forms require you to know what's available.
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