I am a part-time sales consultant and I just wanted to know, when writing off something, for example $10.00 in office supplies, how much $$ does this correlate to me getting back? For example, bottom line, how much am I getting back in cash off of $10.00 in office supplies? And mileage as well? Thanks!
2006-07-17 01:01:58 · 2 answers · asked by Jenn B 2 in Business & Finance ➔ Small Business
Your deductions that you are allowed take off from the profit you make. Lets say you earned $5,000. in a year at your part time job. There are several things that you can deduct. Business use of your home, utilities, office supplies, taxes, insurance, advertising,travel,meals, entertainment.You can also depreciate certain items. Then lets say with all of your deductions it comes to a total of $2,000. You then subtract that amount from your profit. Sometimes your expenses are more than your profits.
2006-07-17 01:14:28 · answer #1 · answered by patclem2 4 · 0⤊ 0⤋
How much you are saving depends on your actual tax bracket. If you make $100 and spend $10 in office supplies then you claim $90. If you are in a 15% tax bracket then you pay $13.50 in tax rather than $15. The IRS lets you take off a set amount per mile. It is different each year.
How much you get back when you file your taxes is influenced by how much you have your employer take out. If you are self employed it is a totally different situation because then you have to pay Estimated Taxes quarterly.
Talk to your tax consultant.
2006-07-17 08:09:58 · answer #2 · answered by therego2 5 · 0⤊ 0⤋