I recently became an independant contractor about halfway through this tax year, I am still learning about all the proper ways to take care of my tax obligations. I was really forced into this by my employer and didn't have any time to study the information I need. I am interested in buying a home int he next year or so and I was told in order to qualify for the amount of loan that I want I would have to make about 3,000.a month . I have been sitting aside about 20 % of each weeks earnings to send in for taxes, how do I know how much to send in exactly in order to acheive my goal of showing on my tax return that the income was 3,000. per month. It really is about that give or take a little each month
At 60,000 a year you would bring in 5000.00 per month for the year (before taxes) Your on the right track by setting back 20% of your gross income. But, in order to do as your banker requests it has to be after your all your expenses are taken out (supplies). If he is wanting 3000.00 gross (before taxes) I would find another lender. Most lenders go off the gross income not net. I'm sure if this makes any sense. But, if your in doubt call your CPA and ask them. There is wide variety of books that can also help you beef up on the tax end of your business. |
