Most people's taxable income is tiered, meaning that if you make under "X" 100% of it will be taxed at say 5%, if you make more than that, then anything between "X" and "2X" will be taxed at say 10% and so on at different income levels. So if for example X=$100, and you made $150 that year, then you will be taxed 5% for the first $100 (=$5) , and then 10% on the remaining $50 (=$5), so your tax that year on $150 income would be $10. What the IRS will call that would be an "Effective Tax Rate" of 6.66%. Clear as mud!
Also guys putting money in stocks is only taxed at 15%. plus you'll make that money back in growth. Amazon stock has 25% grown annually for the past few years.
Agreed! I'm self-employed and occasionally provide free services for 501(c) non-profits. I "write them off" on my taxes.....but I'd sure rather get paid! I'm doing a nice thing, but I'm losing money.
short , and sweet...kool!!
Andrew Ward hey thanks just like it
Most people's taxable income is tiered, meaning that if you make under "X" 100% of it will be taxed at say 5%, if you make more than that, then anything between "X" and "2X" will be taxed at say 10% and so on at different income levels. So if for example X=$100, and you made $150 that year, then you will be taxed 5% for the first $100 (=$5) , and then 10% on the remaining $50 (=$5), so your tax that year on $150 income would be $10. What the IRS will call that would be an "Effective Tax Rate" of 6.66%. Clear as mud!
saltyshellback you make it sound so simple
Also guys putting money in stocks is only taxed at 15%. plus you'll make that money back in growth. Amazon stock has 25% grown annually for the past few years.
Agreed! I'm self-employed and occasionally provide free services for 501(c) non-profits. I "write them off" on my taxes.....but I'd sure rather get paid! I'm doing a nice thing, but I'm losing money.
Fleotus Bing I hear you thanks for watching and commenting
padeem or not to padeem that is the question.
joeduece1 yeah that is a good question
what is the difference between w2 and 1099 for a company if they offer it ?? love the videos keepem coming.