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Thursday, October 20, 2011
Tuesday, October 18, 2011
What is Net Earnings from Self-Employment?
Net earnings from self-employment is the basis upon which self-employment tax is paid. It is a term found on Schedule SE, Self-Employment Tax where the tax is figured annually (see Line 4 of Section A and Line 6 of Section B).
Net Earnings From Self-Employment and Net Profit on Schedule C:
Keep in mind, the term net earnings from self-employment is NOT the sameamount as the net profit amount shown of Schedule C, Line 31 (or Schedule F for farming, or Schedule K-1 for partners).
Schedule C net profit is carried to Schedule SE where it is reduced by a fraction. It is this reduced amount that is called net earnings from self-employment.
The fraction is .9235 and is shown on Schedule SE, Line 4 of Section A or Line 4a of Section B (depending on which section you use).
EXAMPLE:
- If net profit on Schedule C is $20,000 then net earnings from self-employment is $18,470 ($20,000 x .9235).
Note that the .9235 adjustment is the equivalent of a 7.65% reduction to net earning reported on Schedule C (100% minus 92.35% = 7.65%).
Note: The whole point of the 7.65% adjustment to net earnings and thededuction allowed on Form 1040, Line 27, for one-half (50%) of the self-employment tax, is to place self-employed persons on the same level as employees subject to FICA taxes.
Computing Net Earnings From Self-Employment
Steps to computing net earnings from self-employment:
- Carry net profit from Schedule C to Schedule SE, Section B, line 2.
- If line 1 is zero, enter the amount shown on line 2 on line 3
- Line 1: If you have farm income (Schedule F) or income from a partnership (Schedule K-1), enter the total of these amounts on line 1. Then add lines 1 and 2 and enter the total on line 3.
- Multiply line 3 (Schedule C net profit) by .9235 (this percentage is preprinted on line 4a).
- The result in step 3 is your net earnings from self-employment.
EXAMPLE:
- You have a job and operate your own business.
- You received a $30,000 salary from the job. Social security and Medicare taxes were withheld by your employer.
- You operated a part-time consulting business as a sole proprietor for the entire year.
- You reported a net profit from your business of $75,800 on Schedule C
- Net earnings from self-employment reported on Schedule SE was $70,000.
- $75,800 x .9235
- Your salary from your job plus net earnings from self-employment total $100,000 ($30,000 plus $70,000).
- The maximum wage base for tax year 2007 for social security taxes is$97,500 ($102,000 for 2008).
- There is no such limit for Medicare tax purposes.
Result:
- Social security tax on your salary:
- Your employer withheld social security tax (6.2%) and Medicare taxes (1.45%) from your $30,000 salary.
- Self-Employment tax on net earnings from self-employment of $70,000:
- Social security portion of self-employment tax:
- Since you had social security tax withheld from your $30,000 salary, the amount of net earnings from self-employmentsubject to social security tax is $67,500 (the wage base limit of $97,500 minus your $30,000 salary).
- Medicare portion self-employment tax:
- Since there is no earnings limit for Medicare taxes, your net earnings from self-employment subject to Medicare tax is $70,000 (Schedule C net income of $75,800 x .9235).
- Your self-employment tax equals $10,400 and is a combination of:
- The social security portion, $8,370 (12.4 x $67,500) plus
- The Medicare portion, $2,030 (.029 x $70,000).
- Social security portion of self-employment tax:
Reminder: You deduct $5,200 on Form 1040, Line 27 (50% x $10,400).
When to Pay Self-Employment Tax
When you make your quarterly estimated tax payments, you include both your estimated federal income tax liability AND your estimated self-employment taxliability.
For tax year 2008, quarterly installments are due:
- April 15
- June 16
- September 15
- January 15, 2009.
Schedule SE if filed annually along with Schedule C and Form 1040.
More Than One Business
Only one Schedule SE is required to be filed, regardless of the number of unincorporated businesses from which you had net earnings from self-employment.
For example, if you had three businesses, two with net earnings of $20,000 and one with a net loss of $5,000, you would file:
- Three Schedule Cs, and
- One Schedule SE.
The net profit of $15,000 ($20,000 minus $5,000) would be entered on Schedule SE. The $15,000 would then be converted to net earnings from self-employment (.9235 x $15,000=$13,853).
Net Operating Loss Deduction
Do not use a loss carried over from a previous year to reduce business income for self-employment tax purposes.
Personal Exemption and Self-Employment Tax
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What Does Net Income - NI Mean?
1. A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a company's income statement and is an important measure of how profitable the company is over a period of time. The measure is also used to calculate earnings per share.
Often referred to as "the bottom line" since net income is listed at the bottom of the income statement. In the U.K., net income is known as "profit attributable to shareholders".
2. An individual’s income after deductions, credits and taxes are factored into gross income. Deductions and credits are subtracted from gross income to arrive at taxable income, which is used to calculate income tax. Net income is income tax subtracted from taxable income.
1. A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a company's income statement and is an important measure of how profitable the company is over a period of time. The measure is also used to calculate earnings per share.
Often referred to as "the bottom line" since net income is listed at the bottom of the income statement. In the U.K., net income is known as "profit attributable to shareholders".
2. An individual’s income after deductions, credits and taxes are factored into gross income. Deductions and credits are subtracted from gross income to arrive at taxable income, which is used to calculate income tax. Net income is income tax subtracted from taxable income.
Investopedia explains Net Income - NI
1. Net income is calculated by starting with a company's total revenue. From this, the cost of sales, along with any other expenses that the company incurred during the period, is removed to reach earnings before tax. Tax is deducted from this amount to reach the net income number. Net income, like other accounting measures, is susceptible to manipulation through such things as aggressive revenue recognition or by hiding expenses. When basing an investment decision on net income numbers, it is important to review the quality of the numbers that were used to arrive at this value.
2. For example, suppose that your gross income is $50,000 and you have $20,000 in deductions and credits. This leaves you with a taxable income of $30,000. Then, suppose that another $5,000 of income tax is subtracted; the remaining $25,000 will be your net income.
1. Net income is calculated by starting with a company's total revenue. From this, the cost of sales, along with any other expenses that the company incurred during the period, is removed to reach earnings before tax. Tax is deducted from this amount to reach the net income number. Net income, like other accounting measures, is susceptible to manipulation through such things as aggressive revenue recognition or by hiding expenses. When basing an investment decision on net income numbers, it is important to review the quality of the numbers that were used to arrive at this value.
2. For example, suppose that your gross income is $50,000 and you have $20,000 in deductions and credits. This leaves you with a taxable income of $30,000. Then, suppose that another $5,000 of income tax is subtracted; the remaining $25,000 will be your net income.
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Net income
Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividendor held by the firm as an addition to retained earnings. Asprofit and earnings are used synonymously for income(also depending on UK and US usage), net earnings andnet profit are commonly found as synonyms for net income. Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity. Net income is informally called the bottom line because it is typically found on the last line of a company's income statement (a related term is top line, meaning revenue, which forms the first line of the account statement). The items deducted will typically include tax expense, financing expense (interest expense), and minority interest. Likewise, preferred stock dividends will be subtracted too, though they are not an expense. For amerchandising company, subtracted costs may be thecost of goods sold, sales discounts, and sales returns and allowances. For a product company advertising,manufacturing, and design and development costs are included.
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MoneyTalks Review
MoneyTalks is a multi level marketing opportunity founded by John Morgan. He has a financial background with a degree in economics and an MBA. John has covered all areas of finance in his career and has taught professionals about how to create wealth, asset protection and asset management, as well as much more besides. He decided to start an MLM company selling financial packages and services. Back in 2008 and has proved that it can work.
So how can you make money from this opportunity?
To join the company you can do one of two things: You can join as a retailer. In order to do this, it will cost you $60. This is for the sales manual. After some training, you can then start selling the financial packages. The second option is to pay $399 and this gets you a complete turnkey business package complete with websites, back office support and other necessary training tools as well as all the training you need.
The MoneyTalks compensation plan is what is known as a “reverse margin” plan which means that the profit from the sales gets paid directly to you first and not the company. You are required to make 7 direct sales per month before you are eligible and subsequently are no monthly qualifications in order to meet your levels.
The website is very cagey about how much money it is possible to make but one thing is for sure, in this current climate, people are very worried about their finances. Therefore financial advice packages and financial services are “of the moment”, so the timing couldnt be better. However like any multi level marketing business it is important to know how to market the product as well as understanding how to market yourself.
If you are a new to multi level marketing then MoneyTalks might not be the company for you, but if you have been around the mlm industry for a while and know and understand marketing practices, then it may be possible to make some good money from any opportunity.Dane Tanodra is a internet marketing coach who works with many top marketers from all around the world. If you want to learn more about Dane or how you can earn five figures monthly from home without having to sell, take a look at http://freedom-2-wealth.com
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So how can you make money from this opportunity?
To join the company you can do one of two things: You can join as a retailer. In order to do this, it will cost you $60. This is for the sales manual. After some training, you can then start selling the financial packages. The second option is to pay $399 and this gets you a complete turnkey business package complete with websites, back office support and other necessary training tools as well as all the training you need.
The MoneyTalks compensation plan is what is known as a “reverse margin” plan which means that the profit from the sales gets paid directly to you first and not the company. You are required to make 7 direct sales per month before you are eligible and subsequently are no monthly qualifications in order to meet your levels.
The website is very cagey about how much money it is possible to make but one thing is for sure, in this current climate, people are very worried about their finances. Therefore financial advice packages and financial services are “of the moment”, so the timing couldnt be better. However like any multi level marketing business it is important to know how to market the product as well as understanding how to market yourself.
If you are a new to multi level marketing then MoneyTalks might not be the company for you, but if you have been around the mlm industry for a while and know and understand marketing practices, then it may be possible to make some good money from any opportunity.Dane Tanodra is a internet marketing coach who works with many top marketers from all around the world. If you want to learn more about Dane or how you can earn five figures monthly from home without having to sell, take a look at http://freedom-2-wealth.com
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Easy Ways To Earn Cash – Earn Cash The Easy Way
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Earn money with website
Earn money with your own website
If you have your own website or blog with good number of visitors, then you can earn a good amount of money by placing advertisements on your website. There are some third party websites what serves ad on your webpage and pays you. All you need to do is just register with one of them and after logging into your account you will get some HTML ad code. Then place those codes on your webpages and ads will start appearing. The thirdparty website will pay you on the basis of how much visitor views and clicks on those ads. Finally after each month you will get paid via check, paypal or other payment systems.
Earn money with your own website via bidvertiser.com
If you have your own website or blog with good number of visitors, then you can earn a good amount of money by placing advertisements on your website. There are some third party websites what serves ad on your webpage and pays you. All you need to do is just register with one of them and after logging into your account you will get some HTML ad code. Then place those codes on your webpages and ads will start appearing. The thirdparty website will pay you on the basis of how much visitor views and clicks on those ads. Finally after each month you will get paid via check, paypal or other payment systems.
Earn money via online from websites
Earn money via online from websites
Technology is the business extension of science and the greatest technology ever invented is Internet. Some people says the Internet has made more millionaires than any other means in history. Millions of people have found success with internet and millions of people still seeking gold coins on the internet.
Anyway we are not gonna teach you how to be a millionaire or billionaire. We are just trying to let you know that how you can make some money extra
Anyway we are not gonna teach you how to be a millionaire or billionaire. We are just trying to let you know that how you can make some money extra
- Earn with your own website - You can earn a decent amount of money if you dedicate some advertising space on your website or blog. You will get paid when someone clicks on a ad placed on your website or blog.
- Earn for visiting sites - You can Earn a few cents per website you visit, through a specific paid to click network.
- Earn by Writing article - There is thousands of websites want to pay you for your article or writings.
- Get paid to signup - You can earn some money by joining a website as a member.
- Earn from online Games - Play online games and win, you will get a reward by the authority of that site.
- Earn from your photos - If you have some photos captured by you, then you can sell them online. Some sites pays you if you upload those on that site.
- Earn from your videos - There is also opportunity of earning by uploading your videos.
- Work from home jobs - Actually i am talking about freelance and outsourcing jobs with what you can earn your livelihood.
- Paypal - Paypal is a third party payment processor. It can pay or receive funds one behalf of you, all you need is to open a account with Paypal. But be careful if you are from Bangladesh then Paypal is not for you because Paypal does not support Bangladesh. So don't try to do anything fraud with paypal, you will loose all of your money. Mostly try to avoid Paypal fund receiving option where another payment option is available. If you do not have another option then just contact someone who have a verified paypal account. ask him/her to receive fund on his account for you. Or you can contact some hosting firms to receive fund for you. Learn more on www.paypal.com
- E-gold - E-gold is like paypal and it supports any country. just signup and start receiving funds. more on www.e-gold.com
- Moneybookers - It is also like paypal and supports all country.
Notice:- All websites and services described here is not a part of bangalionline.com. So bangalionline.com is not liable for those sites and services. Try to go ahead on your own risk. May be you get scammed several times but millions of people earning this way. If you can build a good referrals Then you will be able to earn a very good amount of money. Best of luck!
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Money Earn from Writing[4]
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