aaronc879
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jan 10, 2006
- Messages
- 5,356
I participate in phase 1 clinical research studies for a living. The senior tax preparer at the local H&R Block says I have to pay taxes as a self employed contract worker because I plan to make a profit and plan to continue doing the studies as my primary source of income. I make around $25K/yr and pay around 20% in taxes for self employment tax, Federal and State income tax. That's a lot for a low income person but I do it since it's the law. After talking with some other study participants it seems more than half of them have never filed taxes despite making in some cases over $500K from doing studies. They don't pay taxes despite making as much as $50K/yr. They get free healthcare, free phones, subsidized housing, food stamps and more. Of the people who do file taxes most of them file the income as "other income" rather than self employed income so they don't pay the expensive FICA. Am I a sucker or are they breaking the law. Why would the IRS not notice when people are making $500K+ and never paying taxes. One of those people showed up in a brand new Corvette.