It is part of the FICA/SS/etc. taxes we pay.  The percentage is really about 
15.6% for FICA and 1.5 for Medicare.  Thank the New Deal for this.

As for expenses, keep receipts.  Also keep a log of milage and fuel when 
meeting with clients or picking materials, software, hardware, etc.  Estimate 
what percentage of your square footage is used for your coding, etc. and 
estimate what percentage of the day it is used for that purpose and use that 
for deducting part of your mortgage/rent.

i.e. If you use an office that is 12% of the total square footage for coding, 
but use that same office for 3 hours of gaming every night you can deduct 7/8th 
(21/24) of the 12% of your mortgage/rent.

Track every expense, including training.  In some circumstances, your lunches 
may be deductable.  Software you purchased for this job is also deductable.  
Hardware needs to be depreciated.  You can use a 3 to 5 year depreciation 
schedule on this.  Three years gives you the best results in most cases.  

Get a good tax accountant to help with your planning this year and your return 
next year.

>wth.
>medicare? why do i have to pay that?
>i know ss 15% fed 20%
>fark...
>
>On 4/2/07, Paul Ihrig <[EMAIL PROTECTED]> wrote:
>> man, i hate money.
>> wish i could just code, eat & drink.
>> and then spend a week in the woods & another on an island.
>>
>> will call a friend, his mom is an accountant for a local design firrn.
>>

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