Thinking of starting Business.. Income Tax?

Yea, i understand what you are getting at TaxLady. I told my parents and they said just not to worry about it.



I didnt mean to get into an arguement about this with any fellow autopians. Im sorry to anybody whom i may have offended or angered. lol. *starts chanting* "all i am saying... is give peace a chance....":nixweiss :argue
 
Hey Roderigo,



I don't think you made anyone upset. It's a reasonable thing that we each pull our own load. As far as taxes go, the sooner you learn how the game works, the better. Get savvy about taxes and saving money.



There are a couple ways to look at your current situation. You can view it as an evil situation that you want to avoid as long as possible or you can embrace the horror and begin building a history as a wage earner/business man. I think the later is the better route. Paying taxes allows you to establish an earning history. With an earning history you get credit. With credit and savings, you can achieve wealth. If you start saving $100 per month at age 18, you can easily build an investment worth $1,000,000 or more by the age of 40. Think about it. You can't replace time... grab it while you're young!



db
 
Just my $.02...



I would report your income. I think if you make under about $6,000, then you'll have no real taxes due. I don't think you need to charge sales tax for self-employed services, but I'm not sure on that. Maybe it depends on how much you'll be selling. Sales tax is usually only on goods. Detailing isn't a good.



If you object to how much you pay in taxes, you need to address that at the polls. Not by withholding payment.



However, those arguments about getting cheated out of gas or soda are really not accurate. You aren't buying a service from the government like you are buying a soda. It's more like if the government charged you for a case of soda, gave you 5 of them, and gave the other 19 away. So you have a choice of either screwing the government and getting 5 sodas for free, or of getting screwed out of 19 sodas. I realize that isn't exactly a perfect picture either, though.



I am not a big fan of paying for government services for other people. I am very against social(ist) programs. I think charity and humanity and compassion are all great things when they are exercised voluntarily. But this is America. It was founded on certain principles of freedom and inherent rights. I am perfectly within my rights to want to keep what I earn. If I care about helping others, I can do that on my own. No one should be forced to do that. Anyway, I do pay my taxes. And I express my opinions about them at the polls every year.
 
Originally posted by NY detailer

wow, you took this real personal.
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I didn't mean for my spill to come off that way. And no, what little if any taxes he may pay wouldn't even pay for one of those high price government toilet seats, but every bit contributes, no matter how small. Besides the federal tax issue, there could also be local income tax due.



Roderigo, I only wanted to point out my opinion from being a tax payer for over 30 years. My piece was not intended as an attack on you or anyone else that receives unreported income. I understand the reasoning for doing it, lots of people do it and that's just the way it is. How many Chinese buffets have you been to where you've seen them ring up their sales? For me, none. :rolleyes:



By the way, I didn't feel this way 17 years ago. I was all for keeping as much unreported cash as I could. That was before I got married and my wife starting working for the IRS 15 years ago. And no, the IRS is not the bad guy. They only try to apply the tax law as it was written by the Senators and Congressmen that were elected.
 
Aurora40 said:
Just my $.02...



I would report your income. I think if you make under about $6,000, then you'll have no real taxes due. I don't think you need to charge sales tax for self-employed services, but I'm not sure on that. Maybe it depends on how much you'll be selling. Sales tax is usually only on goods. Detailing isn't a good.
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I charge 8.25% tax on every detail job. NYS makes me collect it for them. I tell all my customers I do not charge sales tax, I only collect it.



If you dont charge tax thats up to you guys, but the worst thing you can do is charge tax and not pay it to the IRS.

You need to way your options & risk just like anything else
 
He is 16 years old trying to make a little bit of cash on the side... Look back to when ya'll were 16 and then tell me that you were paying taxes back then for washing your neighbors cars... Didn't Think So... And its no a little guy who is making a little bit of money who affects the economy its all the big fish that dont pay their taxes either so then who is he really gonna affect? Im sure the government wont send an auditor to investigate a boy's car washing business...
 
The one thing that kids are not taught in our schools today is how to deal with money in the real world.



I agree completely with DavidB about using this Business opportunity to the fullest. There are lots of realities to business, sales, receivables, expenses, taxes, future growth, etc.



You have a chance in a micro way, to get exposure to all these.



Working for yourself in which ever field you choose, will afford you the most opportunities in life.



Good luck, and have fun!
 
NY detailer said:
I charge 8.25% tax on every detail job. NYS makes me collect it for them. I tell all my customers I do not charge sales tax, I only collect it.



If you dont charge tax thats up to you guys, but the worst thing you can do is charge tax and not pay it to the IRS.

You need to way your options & risk just like anything else
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That may depend on the state, though. If I go get an alignment on my car, I don't pay sales tax. They didn't sell me any goods. But if I bought some parts from the shop, they'd charge a tax. I don't know that every state has a tax on services.
 
DavidB said:
If you start saving $100 per month at age 18, you can easily build an investment worth $1,000,000 or more by the age of 40. Think about it. You can't replace time... grab it while you're young!
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Not to down-play the general message about investing, but technically you would have to be earning an interest rate of more than 24.43% in order to achieve that kind of future value on a $100/month investment. ;) Unless you're doing risky stock market day-trading, it'll be hard to get a rate like that.



If you earn 5%, it would be $48,000. If you earn 10%, it would be $95,000. Still a nice chunk of cash to supplement your retirement with, though. And it always pays to start investing as early as possible. If you started investing twice as much, $200/month at age 30, you would only end up with $31,000 at 5% or $41,000 at 10% by the time you were 40. Money is more valuable the earlier you can invest it.
 
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