Wednesday, July 20, 2011

Doing the Right thing is Expensive

There is this great scene in the Secret Diaries of a London Callgirl where the main character is shagging her accountant and after, he says "remember to put away 40% of that..."

I got a second opinion. The calculations were correct. But what annoys me is that my accountant didn't explain to me how things work (I asked, too). Well. For the healthcare system and retirement (not that I will ever be able to at this rate) you have to pay 40% ahead in July, another 40% in November, and the other 20% in July (along with another 40% for the year after). Great. Can't wait til november! (Sigh of desperation!!)

The good news is that at least the taxes are paid because my invoice includes a 20% tax that clients pay (ritenuta d'acconto). I should get a slight refund (ha) for what I overpaid that way, which will go towards (hopefully) reducing what I have to pay in November.

Realization number 1: Here it comes.

Doing the right thing when it comes to taxes in Italy is not advantageous for the pockabook (as they say back in Wisconsin), but it must be done...

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