Posted by Buddy Young on 2/6/13 7:55pm
Msg #454377

Had my taxes done today

and I was curious as to how much my net profit was after all deductions including travel, home office and taxes. My net profit came out to 52%. I was wondering how that compared to the rest of you. I didn't buy any equipment last year.

For all you mathmatically challanged people out there: gross income - all expences = net income. For example: gross income = 1000, expences = 500, net income ( the amount you get to put in your pocket = 500) 500 divided by 1000 = .50 or 50%

Reply by Larry/IL on 2/6/13 7:59pm
Msg #454378

Net income on your tax return is not........

.......always what you put in your pocket. It usually revolves around one of your largest expenses.

Reply by sueharke on 2/6/13 11:17pm
Msg #454444

For one non-mathematically challenged person - does that 52% include income tax and SE tax? Did you consider the cost of the tax preparation for your schedule C? I believe that form alone could have cost about $300 (depending on the tax service). Also, did you pay any SE taxes? That should also be deducted to compute your "net profit after all taxes."