Full timers: How much do you make after taxes.

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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.
#main internet marketing discussion forum #full #make #taxes #timers
  • 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
    • [1] reply
    • 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.
  • 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.
  • 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.
  • 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.
  • 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
  • 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.
  • 15% tax, wow... I pay about 50% here in Sweden.
    • [1] reply

    • 50% ?

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

    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).

    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?).

    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.

    We agree there.

    Yes, this makes complete sense, of course.
    • [1] reply
    • That must have been an interesting discussion. Can't imagine discussing how much I make with a client, or with my doctor.

      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.

      .
      • [1] reply
  • 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.
    • [1] reply
    • 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)
  • 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.
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    Full timers: How much do you make after taxes.

    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.