Comments on: Taxes http://tightfistedmiser.com/2010/02/08/taxes/ Extreme Frugality - How to Live Well on Very Little Tue, 22 May 2012 10:42:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Andy Hough http://tightfistedmiser.com/2010/02/08/taxes/comment-page-1/#comment-43426 Andy Hough Tue, 09 Feb 2010 16:16:06 +0000 http://tightfistedmiser.com/?p=1831#comment-43426 Miser - I do have expenses that I can deduct from my self-employment income and am planning to do so. The expenses for running websites aren't that much though. I can probably get creative and find some more expenses but I don't want to get too creative. And even if I get creative I won't have enough expenses to come close to eliminating my self-employment income. I should have overpayment on my federal income tax that I can apply to my self-employment taxes though. Miser – I do have expenses that I can deduct from my self-employment income and am planning to do so. The expenses for running websites aren’t that much though. I can probably get creative and find some more expenses but I don’t want to get too creative. And even if I get creative I won’t have enough expenses to come close to eliminating my self-employment income. I should have overpayment on my federal income tax that I can apply to my self-employment taxes though.

]]> By: My Frugal Miser http://tightfistedmiser.com/2010/02/08/taxes/comment-page-1/#comment-43423 My Frugal Miser Tue, 09 Feb 2010 15:14:40 +0000 http://tightfistedmiser.com/?p=1831#comment-43423 Andy, I'm sure you know this, but you only pay self-employment taxes on your net earnings. "Net" is after all your expenses. Are you tracking every expense you incur in making the income? The two self-employment endeavors I have are mystery shopping and rental properties. Eventually I expect both to show "income" rather than losses but right now depreciation on my houses wipes out my income so that I show a loss. For mystery shopping, I put on a lot of miles to do the shops, and have even stayed in hotels when I've gone out of state. The hotel stay, mileage, and other expenses such as Internet access are all deductible. None of this may apply to your earnings, but I was curious how much you are able to net out for expenses. Andy,
I’m sure you know this, but you only pay self-employment taxes on your net earnings. “Net” is after all your expenses. Are you tracking every expense you incur in making the income?

The two self-employment endeavors I have are mystery shopping and rental properties. Eventually I expect both to show “income” rather than losses but right now depreciation on my houses wipes out my income so that I show a loss. For mystery shopping, I put on a lot of miles to do the shops, and have even stayed in hotels when I’ve gone out of state. The hotel stay, mileage, and other expenses such as Internet access are all deductible.

None of this may apply to your earnings, but I was curious how much you are able to net out for expenses.

]]>