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by dnautics
4218 days ago
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So. If I were still a postdoc (~40k/year with three years of experience), I would still be paying car payments, insurance. Now, I make those payments and (I think) I can deduct them from my taxes. Of course comparing to a postdoc is unfair because you're putting in ~80 hours a week, which is certainly below minimum wage, and the postdoc market is totally insane. Nonetheless, I am definitely making more than minimum wage - for the first time in my life I have savings and investments. Not to mention the fact that I have launched a nonprofit, sinking quite a bit of my own out-of-pocket to get that running. Granted, the take home was much higher at the beginning of the year (avg 1400/wk) than it is now. |
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80 hours/wk * 52 weeks * $9 = $37,440 pre-taxes
> Now, I make those payments and (I think) I can deduct them from my taxes.
If you use your vehicle for only business purposes, then yes, you can. If you mix personal and business use, you have to determine the percentage of use, and you can deduce the business percentage.
Since your business involves your car better than 40 hours/week, you should be able to deduct most of the payments.
> Granted, the take home was much higher at the beginning of the year (avg 1400/wk) than it is now.
So wait, do you make 1000/wk now before or after you deduct expenses and taxes or before? I'm assuming that's your pretax/expense earn?
Regardless, if it's working for you and you enjoy it, that's cool. I just hope you're modeling your expenses and taxes correctly and don't get freaked out come tax season.
Most people I know who 1099 get it grossly wrong every year. Which is why it's recommended you do quarterly taxes.