what do you get back on your taxes when you write off buisness expences?

Question

i started an ebay biz this year i know ican write off my computer,printer digital cam..ect.. but will i get the money back i paid for it how does it work?

Answer 1

You do not get the money back that you pay for your business items. They way it works is they take the amount you make and subtract your business expenses. The new amount becomes your yearly income and is what you will be paying your taxes on.

For example... if you made $40,000 with your Ebay business, but spent $20,000 in expenses, your income was actually only $20,000 because you put $20,000 back into the business. (it becomes a tax credit)
You would only be paying taxes on the $20,000 that you actually made.
You don't actually get anything back unless you file head of household or get a child credit or something like that.

The best thing to do is take your taxes somewhere to get done instead of trying to do them yourself, at least for the first year to make sure that everything that can be deducted is being taken.

Answer 2

Nothing - You get nothing. You only get money if you pay it in to the government, and you earn more than you spend, otherwise forget it. Even with that there is no assurance you will get any money back. You really only get it if you pay it in and your totaled taxes due at the end of the year are less, than what you prepaid in. You should talk with someone about payroll taxes and how they actually work. People don't understand how that works, and it is very important in life and especially as a business ower. Go to see an accountant who is giving free consultations and ask how you can pay "estimated quarterly tax payments throughout the year" I wish they taught this stuff in highschool. Good Luck

Answer 3

Assuming that you live in the US, you do not get back the money you paid for your equipment. You will receive a tax credit that will offset any taxes you owe. for more info, go to the IRS website:
http://www.irs.gov