Full timers: How much do you make after taxes.

15 replies
As someone who has lurked on IM forums for years and who makes good money at a relatively easy job I'm curious.

I stated this in another thread but my sales job gives me take home pay of $40+k a year. I work a bit over 40hrs a week on average but truly work way less than that when you figure the free time I have.

Of course I would love the freedom of working for myself but it always seems to me that almost everyone I hear in IM works more and makes less than I do. Sure some people make a lot more and put in way less effort but those are always the exception.

I have used the skills I have learned here over the years to make me more valuable to my company but I've never really done much for myself because I don't feel like I can make money worth my time. I've considered and may do some offline marketing since that seems like a way I could make money worth the time and effort I put into it. But in the end I know I am lazy.

So how much does your IM business make for you after taxes? What is your take home pay basically and how many hours pre week do you put into it? I'm really curious if I have been getting the wrong impression from my years of lurking.

Of course saying that I plan to expose both my daughters once they are in their teens to internet marketing. I think if you get into this young and early in your career you can truly make a great living in time. But for guys already mid career who make good money with jobs they love it is hard to make the job.
#full #make #taxes #timers
  • Profile picture of the author Justin Says
    I've only had to pay taxes once so far because I started in 2010, but I can say that I didn't have to pay very much taxes thanks to H&R Block. Most of my money goes back into my business so that I can build my empire larger, so that's probably the case.

    NOTE: I AM NOT A LAWYER AND DO NOT HAVE ANY EXPERIENCE IN THE FIELD OF TAXES, DO NOT USE THIS INFORMATION FOR LEGAL PURPOSES AND IF YOU NEED A PROFESSIONAL, PLEASE CONTACT ONE PERSONALLY
    Signature

    My name is Justin Lewis. My digital marketing company has been in business for over 10 years with multiple six-figure years. We do provide a premium web design service.

    {{ DiscussionBoard.errors[4745154].message }}
    • Profile picture of the author cashtree
      Originally Posted by Justin Lewis View Post

      I've only had to pay taxes once so far because I started in 2010, but I can say that I didn't have to pay very much taxes thanks to H&R Block. Most of my money goes back into my business so that I can build my empire larger, so that's probably the case.

      But really, taxes aren't that big of a deal if you just save 15.3% of your earnings.

      That may sounds like a lot, but you aren't going to end up paying that much in taxes if you hire someone from H&R Block or anywhere else to figure everything out.

      Some others say to save 25%, and that's cool too. But if you aren't making $100,000 it's probably not going to be much.

      NOTE: I AM NOT A LAWYER AND DO NOT HAVE ANY EXPERIENCE IN THE FIELD OF TAXES, DO NOT USE THIS INFORMATION FOR LEGAL PURPOSES AND IF YOU NEED A PROFESSIONAL, PLEASE CONTACT ONE PERSONALLY
      that's suprising, pretty sure you have to pay 4 times a year(estimated taxes) for any online income, since is self employment. Also have to pay around 15.3% alone yearly for medicare+social security, in reality we have to pay more in taxes working for ourselves than if you were an employee because employeers pay half of the one thing. We have to pay federal and state taxes, is kind of confusing stuff, I made a post about it in another thread going into more detail which was was asking about LLC.
      {{ DiscussionBoard.errors[4745257].message }}
  • Profile picture of the author Aaron Doud
    Yeah self employement alone is 15+% and if you are making good income taxes should be a signficant percentage. Tax professionals can help you lower your taxes but most expenses are pretty legitiment to your profession. Whioch means yeah you are writing off things but its not something you would have gotten for yourself if not in business. yeah you can write off milage and computers and find ways to take business trips vs vacations but in the end it most of your write offs and business expenses are real costs of being in business and not bonuses. Plus insurance for the self employed costs more.
    {{ DiscussionBoard.errors[4745489].message }}
  • Profile picture of the author cashtree
    I posted more about what i've learned about LLC and taxes here http://www.warriorforum.com/main-int...ml#post4633946 granted this doesn't take into account write offs and such, is the pure basics, and I could be wrong, i'm no accountant.
    {{ DiscussionBoard.errors[4745497].message }}
  • Profile picture of the author Aaron Doud
    cashtree you can run an LLC as an S-Corp or send the profit thru to yourself. Depending on the business there are advantages to both but for most people here you would want to pay the personal taxes vs corp and personal taxes. Only truly large companies want to keep money in the business to the level that corp taxes make sense and at that point you need to normally be a true corp and not just an LLC.
    {{ DiscussionBoard.errors[4745524].message }}
  • Profile picture of the author Yogini
    If you do set up a home office used only for that purpose then there can be deductions based on that, but as others have said the social security part plus tax rate for the income bracke you are in plus health insurance can be high. Keeping good records is essential plus paying quarterly helps. Also paypal will be sending out 1099s for the year 2011 which is something new they are doing (though one should've been reporting income in any case).

    Debbie
    {{ DiscussionBoard.errors[4745566].message }}
  • Profile picture of the author Justin Says
    These are just my experiences and this is also due to the fact that I have a lot of deductions because a majority of my earnings go directly back into my business.

    My agent said I was able to take certain percentages of everything and use them as deductions, including rent, electricity, domain purchases, hosting, product purchases (as long as I used them towards my business), and even physical products.

    These are just my personal experiences, everyone's going to vary.
    Signature

    My name is Justin Lewis. My digital marketing company has been in business for over 10 years with multiple six-figure years. We do provide a premium web design service.

    {{ DiscussionBoard.errors[4745572].message }}
  • {{ DiscussionBoard.errors[4745589].message }}
    • Profile picture of the author Suthan M
      Originally Posted by Carl Fridsjö View Post

      15% tax, wow... I pay about 50% here in Sweden.

      50% ?

      Ours in Mly goes to a maximum of 24% or 25% ..
      Signature

      Whats the latest movie you watched? Anything good?

      {{ DiscussionBoard.errors[4745829].message }}
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by lordauric View Post

    it always seems to me that almost everyone I hear in IM works more and makes less than I do.
    That's almost guaranteed to be the case, really.

    That would be true for any form of self-employment.

    The proportion of people who try home-based self-employment and eventually make a living from it has always been small. Far more try and don't really manage it. That perhaps predicates that at any moment, the proportion of people who are earning more than "an average full-time salary" from it is going to be on the low side?

    "Internet marketers" are by no means all people who've given up a job to do it. Many (especially in this economy) found the job gave them up, and IM's more something they're trying through necessity rather than just out of any love for it, determination to achieve it, or whatever.

    Originally Posted by lordauric View Post

    I've never really done much for myself because I don't feel like I can make money worth my time.
    As long as you feel that (and maybe wisely?), clearly it will be so, anyway.

    I never had a job. I started internet marketing after my first year at college wanting to build up enough income by the time I graduated not to have to get a job when I did. Which worked out for me (with plenty of good luck along the way, I freely admit).

    Originally Posted by lordauric View Post

    in the end I know I am lazy.
    That maybe makes salaried enployment more attractive to you? But then again, by the sound of it, you've clearly done well and have a good job which you're good at, enjoy and can do "lazily" (whereas perhaps many/most others would struggle with it?).

    Originally Posted by lordauric View Post

    So how much does your IM business make for you after taxes?
    I've stopped giving raw figures now (though you're totally within your rights to invite people to comment, of course, in a forum subtitled "Where we talk about making money"!), but at the moment I earn a bit more than either my doctor or my lawyer, and I believe I have more long-term upside income potential than either of them, also. So that clearly makes me one of the lucky ones.

    Originally Posted by lordauric View Post

    Of course saying that I plan to expose both my daughters once they are in their teens to internet marketing. I think if you get into this young and early in your career you can truly make a great living in time.
    We agree there.

    Originally Posted by lordauric View Post

    But for guys already mid career who make good money with jobs they love it is hard to make the job.
    Yes, this makes complete sense, of course.
    {{ DiscussionBoard.errors[4745651].message }}
    • Profile picture of the author kindsvater
      Originally Posted by Alexa Smith View Post

      I earn a bit more than either my doctor or my lawyer
      That must have been an interesting discussion. Can't imagine discussing how much I make with a client, or with my doctor.

      Originally Posted by Alexa Smith View Post

      I believe I have more long-term upside income potential than either of them
      That is possible. Internet marketing presents a unique opportunity to create ongoing streams of income that are not attached to hours worked.

      It doesn't matter how much an attorney or doctor charges per hour, it is still money for time and the money stops if the time stops.

      But online marketing also doesn't have the opportunity for contingency fee class action fee recoveries.

      And attorneys, if there were smart, could leverage their knowledge and what they create by adding Internet income streams to their practice. It is like double-dipping!

      I would say, overall, the average attorney makes a lot more than the average Internet marketer. Of course, the average fast food employee might make more than the average Internet marketer.

      .
      {{ DiscussionBoard.errors[4745706].message }}
      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by kindsvater View Post

        That must have been an interesting discussion. Can't imagine discussing how much I make with a client, or with my doctor.
        My lawyer's quite a close friend, and most of my mother's family are MD's so I know what they make (and we're talking more or less about a UK specialist's National Health Service salary which is "public information", really, anyway).

        Both doctors and lawyers earn appreciably more, on average, in your neck of the woods, I think, and what I said might not quite be true over there.

        Originally Posted by kindsvater View Post

        I would say, overall, the average attorney makes a lot more than the average Internet marketer. Of course, the average fast food employee might make more than the average Internet marketer.
        Indeed. And that'll be true on both sides of the Atlantic, I think.
        {{ DiscussionBoard.errors[4745725].message }}
  • Profile picture of the author Snow_Predator
    Don't pay taxes! It's legalized daylight robbery! Avoid it at all costs.

    i.e. get a good accountant who will hide your money from the evil government. Spend EVERYTHING on your business so you don't have to give the government a penny.
    {{ DiscussionBoard.errors[4746417].message }}
    • Profile picture of the author Steven W Johnson
      As John D Rockefeller was fond of saying "own nothing, control everything"

      In the context of this thread, that means a C corporation, and very little salary therefrom (I'm not just a marketer, I'm a CPA)

      The bigger your income, the tougher it is to hide it all. I work with marketers earning in the high 6 and 7 figures - and know of a couple 8 figure dudes (rare) - while their RATES may be the subject of endless political demagoguing, their tax bite is very real (don't forget corp employee payroll, sales, property, excise, state, inheritance, etc etc)
      Signature
      The Ya THINK? channel of a true UnderDog Guardian - Healing the world, One Underdog at a time
      {{ DiscussionBoard.errors[4746447].message }}
  • Profile picture of the author Justin Says
    I don't see how you can pay 50% on taxes xD I'm not bashing you and I'm sorry if that is true, but that is quite a lot. A lot of people in US think that our government charges too much for taxes, but dude, that's pretty crazy.
    Signature

    My name is Justin Lewis. My digital marketing company has been in business for over 10 years with multiple six-figure years. We do provide a premium web design service.

    {{ DiscussionBoard.errors[4746426].message }}

Trending Topics