In the end, what percent tax do you pay?

B

backwoods_lex

New member
I know with my two jobs (currently working for employers), I pay roughly 25-30% including all taxes taken from my check. As professional detailers, what percent usually comes from your gross income after filing with deductions. Thanks to anyone that can shed some light.
 
Being self employeed, you can write off just about everything. Some of my sub-contractors made $40,000 per year and only had to pay about $2000 - $3000 in taxes. If you get real creative, you'll pay alot less than 20%. Get on track with an accountant and he'll set you straight.
 
Make sure you save all receipts for any business related expenses. As David said, you can write of lots of things. Keep really good records of your business mileage and even tolls you pay on the road. The tax percentage you pay is a direct result of your net profit, not your revenue. That is why it is key to deduct anything related to your business.
 
Regardless of reported income, you may be surprised at how much 'they' actually get from you... remember sales tax, state tax, and those sneaky embedded taxes,like gasoline and utilities. I'm told it averages qround 35% !



Talk about having a silent partner.



JB
 
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