I have a pool cleaning business as a side job. I fill out a Schedule C to report my earnings and deductions. I deduct mileage used for the business (I think its 48 cents/mile). My question is, can I also deduct gasoline expenses as well? What about truck repairs?
I recently got my paycheck and there were a lot of tax deductions. Being on my OPT i dont have the Social Security or Medicare tax cut. But my Federal and State Income(NJ) tax deductions were huge. Please could anybody guide me so that I may be able to plan my finances accordingly.
Thanks to "laura" who help me in this. But I am sorry to say i am not able to figure out the exact amount. So here are the deductions i got in my paycheck.
Earnings per month : $ 4928
Federal Income (deduction) : $ 739.20
NJ State Income (deduction): $ 197.12
Please tell me if these deductions are correct.
This is for the state of New Jersey.
Thanks.
some serious confusion about the tax that i pay from my earnings. I work as a s/w devloper. Plz can you make some time and do some calculations as per the numbers that reflect my paystub. Below mentioned pay is for 2 weeks(15 day) period pay details.
SALARAY::: Gross $ 4160
TAXS & DEDUCTIONS:
FICA 318.24
FED WT 807.44
VA ST 216.69
TOTAL Deductions = 1342.37
Net pay is : $ 2817 ( 4160- 1342.37)
The pay roll is run by ADP. In W4 form filled by me, option A,B,E are checked by me.
As per deductions i see, that tax cut seems to be around 33%. Why is it much high.?
Plz can some one explain about the deductions and reason for why am i paying more tax than my frnds who are equal to my gross pay. I hear that , at the end of year when we claim taxes, federal Withholding would be crediting back some amount if it feels they owe me ..Also, during a complete Tax year, what would be the avg tax that i would be paying.. I keep hearing from others that on avg 23-25 % goes in tax. bit i pay now >33%
Tax deductions generally come when earnings are reinvested, back into the businesses. Based on projections, the year should end in a 225K to 275K net profit (this incorporates costs + a maximum IRA). W/ tax-code section-179 in play, a business can deduct ~100K w/in a single tax/yr rather than via the typically longer, multi-year depreciation process. New equipment purchases should absorb ~ 100K; this in turn will allow the business to act on the benefits of section-179. Efficiently utilizing the remaining ~200K is the challenge. Developing & exercising viable & legitimate investment/deduction opportunities is in a sense the goal. Most ideally, I had hoped that the additional funds could serve as a business investment in the form of a business property down-payment (i.e., for a new corporate office). A balloon down payment, to my understanding, however, can not be, as in section-179, taken as a deduction entirely w/in the same year. I am requesting feedback on the topic, and I hope that those with stronger backgrounds/experience will shed light on my self and the group. Clever (above-board) strategies that promote tax deductions are certainly welcome.
Tax deductions generally come when earnings are reinvested, back into the businesses. Based on projections, the year should end in a 225K to 275K net profit (this incorporates costs + a maximum IRA). W/ tax-code section-179 in play, a business can deduct ~100K w/in a single tax/yr rather than via the typically longer, multi-year depreciation process. New equipment purchases should absorb ~ 100K; this in turn will allow the business to act on the benefits of section-179. Efficiently utilizing the remaining ~200K is the challenge. Developing & exercising viable & legitimate investment/deduction opportunities is in a sense the goal. Most ideally, I had hoped that the additional funds could serve as a business investment in the form of a business property down-payment (i.e., for a new corporate office). A balloon down payment, to my understanding, however, can not be, as in section-179, taken as a deduction entirely w/in the same year. I am requesting feedback on the topic, and I hope that those with stronger backgrounds/experience will shed light on my self and the group. Clever (above-board) strategies that promote tax deductions are certainly welcome.
My wife worked in 2007 for only 9 months as an independent contractor for an attorney office in Los Angeles, CA and got paid in cash and by checks without a W-4 form filed, but was given a 1099-MISC form with all her earnings but taxes were not taken out at all… thanks!
I have pre-tax medical and retirement taken out but when I calculate out how much of my total gross I take home, the percentages indicate the taxes are being calculated on total earnings, not the total after pre-tax deductions. I thought that was the benefit of pre-tax deductions – you didn’t get taxed on it. If anyone knows of the legal writings for payroll practices, I would like to know, thanks.