I have a day job in New York City. This makes it so I pay New York state taxes. I live in another state, so I pay that state’s state taxes, and then I pay Federal taxes.
I am also considered “self-employed” as I had two contracted gigs throughout 2010. I expected to pay taxes on the Federal level and in my home state because I didn’t take any deductions on taxes for my day job.
Yeah, no. Apparently, since I worked in New York from September onwards, New York thinks it’s entitled to taxes on my self-employment income. For the entire year, even though I only had anything to do with NY for a quarter of the year. Let’s just say I am not happy as this makes no sense! They also require quarterly payments and wanted to penalize me, but since this was the first time for me, they were nice enough to not penalize me. Aw shucks, thanks New York. Such a pal.
Why is New York City so popular with freelancers? I don’t get it. When you live in NYC, you’re subject to not just NY state taxes, but also NYC taxes. And if you’re freelancing, you get with an additional tax on top of all that. Do people really enjoy having all the money they work for nickled and dimed away by income taxes, stupid high rent, and almost 9% sales tax on anything you buy? And that’s before other things people have to pay, like student loans, or food, or transportation.
I’m really learning several incredibly important things here:
- NYC is a rip off
- I don’t want to work nor live in New York in the long run
- Metropolitan areas are really no good for being economical
- I would move to a state with 0% income taxes if any of them were any good
So all in all, I owe $1800 in income taxes. Though my home state is giving me a $4 refund. Something is obviously Wrong here, and it’s not me.
How did you fare with your taxes this go around? Hopefully much better than mine.
