Quote:
Originally Posted by BearMountainBooks
I thought making 70 percent of 2.99 might help me make the grade. Well, turns out that I would have to sell a lot more books than I do. The social security taxes on the income is 15 percent--right off the top, with nearly no expenses that can be written off of it (you can write off expenses against federal income taxes). Then there's food to buy, rent or house payment...
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No, the SS payment is not right off the top. It's after you deduct all the legitimate business expenses from your gross--that could be your home office, your supplies, your advertising, etc. Then you get to deduct half of your SS payment on your 1040.