Profit Taxed?

Is there a way to get a general idea of how much the IRS rapes me for profit? Is there a specific formula for Sole Proprietors? Or a round about percentage they end up wanting at the end of the year from profits?

not sure how it works down there in the US,but here in canada,as far as profit goes....................they want it ALL!!

Same goes for the US. I had a small sole proprietorship for web design and i made a total profit of $800 (woo hoo!) and they took almost half of it. Of course I got to write off a bunch of things for it all, but I was curious if there was some sort of formula.

PROFIT
I've never made a profit in this business. Wasted film, employee theft, skyrocketing utilities, the such

I have the same problem

So you never pay yourself?

I dont have any employees but it would seem somebody is stealin the stuff!...that plus the wasted film....i go through alot of film....im prolly one of the worst tinters. Oh well...the way i look at it....surely one of these days ill catch on

Dam speck taking your film to tint cars in his off time

Falsifying tax returns is a federal offense!!!! .......willie! To answer the question-with self employment tax-ssi-and income tax you will pay around 26%. Get you an accountant-maybe use willie's and you'll get money back and qualify for food stamps!

yes, its called that little green stuff. We call it cash here in Texas. Straigh out of there wallet to mine




dayum straight 2-3k a year with all the earned income credit and farm losses also

I forgot about all your dependants!

My advise to you is pay quarterly taxes so no worries at year end. Pay an estimated amount.
US Fed takes to my knowledge 17.5% of your earnings. That is before all the exemptions you claim.

Yep, got the same problem that Willie, a lot of waste film, employies loose tools, all that...

Thanks god my account is god!!!!

I would guess take 30% of net sales, put it into a specially designated bank account, and at the end of the year use that money for any taxes owed.

It all depends on your income, the more money you make the more taxes you pay. If you payed half of an $800 profit you need an accountant. My first year I got money back, I did not pay any taxes all year, child credit actually payed me a few hundred bucks. I would guess you'll be paying taxes if you are making 20 - 30k net depending on write offs and deductions and tax credits.