Im a independent contractor so I dont pay taxes and I get paid every week
2006-09-12 19:19:28 · 15 answers · asked by Irene 2 in Business & Finance ➔ Careers & Employment
How can you post that you pay no taxes?
That is certain to piss people off. Of course you pay taxes or the IRS will be knocking on your door asking for proof of support.
Now with that aside, I suspect you meant you don't pay taxes weekly but file quarterly. That will not affect the overall outcome.
AS a business person you can deduct 36 cents per mile as expense from your taxes at the end of the year. That's $36.00 for the 100 miles. If you get 25 miles per gallon you will use 4 gallons of gas at about $2.50 per gallon, (It is coming down) so you spend $10 bucks a day on gas. But there is the maintenance on your car. That's what the 36cents a mile if for. If you aren't banking at least 20 cents for every mile you drive in a special account to replace or repair your car you will end up borrowing money.
Seems to me you make about $110 a day after operating expense but that does not pay any taxes on your earnings.
That comes to about $550 for a five day week at 8 hours per day.
Not a huge paycheck but you could end up with a nice tax return at the end of the year if you have other expenses.
2006-09-12 19:37:50 · answer #1 · answered by WILD ONE 2 · 0⤊ 0⤋
Figure on total costs of the car being 40 cents per mile (gas, repairs, capital to buy the expletive car in the first place, insurance, whatever). That works out to $40/day to drive it that far. Assume you'll drive some other distance - I'll guess total of 30 miles/day - $12/day. Difference is $28/day.
Assume 8 hour days - that's $3.50/hour AFTER TAX money taken off your salary. Maybe $5.00 before tax money. Plus your time is consumed as well. Working closer for $13.50/hour is equivalent but with less time spent driving.
Finally, does the current job offer more prospects (either in that employer or for career growth) - that might make a difference in your evaluation of the situation.
2006-09-12 19:49:50 · answer #2 · answered by larry n 4 · 0⤊ 0⤋
Its relative.
A pizza guy will drive 100 - 200 miles everyday and gets 10 - 20 per hour.
2006-09-12 19:22:02 · answer #3 · answered by Anonymous · 1⤊ 0⤋
it depends on if you are talking about 100 miles altogether or each way. 100 miles each way seems excessive, but it's also important to know if you have any alternative. Is there any other job you could have? A far away job is better than no job. Or if there is another job you could have, how much would that make?
2006-09-12 19:24:18 · answer #4 · answered by Yee Haa! 2 · 0⤊ 0⤋
Unless getting a job of $ 19 per hour driving 100 miles or lesser it is okay.
2006-09-12 19:27:25 · answer #5 · answered by Zia 3 · 0⤊ 0⤋
You are the only person who can answer this.
If you have enough work in your area, there is no need to drive 100 miles to work.
On the other hand if you are looking for work and you need cash, it is probably OK, provided that you can still have some money left after paying for the gas etc
2006-09-12 19:24:26 · answer #6 · answered by AO 2 · 0⤊ 0⤋
If you're driving something like a Ford Expedition, then no. If you have a smaller, more economical vehicle then it's probably O.K.
2006-09-12 19:31:44 · answer #7 · answered by starrynight1 7 · 0⤊ 0⤋
i dont think it would be worth it...even though you dont pay any taxes.. driving 100 miles is a waste is time.. and gas ( which is donna coz you $! and why dont you think of moving ? renting an apartment there ??
2006-09-12 19:25:30 · answer #8 · answered by rocker_girl 4 · 1⤊ 0⤋
Yes i think thats sort of worth it. If u are not paying tax your lucky i pay almost 300- 400 Aussie $$ a week.
and 18.95 american is awesome.. mate dnt quit well worth is... what do u do for work though>?
2006-09-12 19:24:30 · answer #9 · answered by emalie_rose 2 · 0⤊ 0⤋
As an independent contractor, your driving expenses are deductible, so I'd say yes.
2006-09-12 19:27:23 · answer #10 · answered by Anonymous · 1⤊ 0⤋