Violet, it was my agency's payroll person not a CPA. I will definitely be going into a CPA when the money gets here, but I'm planning some business trips and paying off student loans so I just wanted an idea of budget for the next year. Planning for less can never hurt, but hoping I can find a good CPA around here.
Gotcha. Yep, your agency will be paid the full amount and then they will cut you a check for the 85%. They have to pay taxes on that 15% because it's money they
earned. You pay taxes on the remainder because it's what you
And it's good to budget because sadly, whatever you get, the govt. will take nearly 50%. Ouch. Being in the tax business, we're often the bearer of bad news.