True Net Income
- Thread starter dancorn
- Start date
I guess it would be actual. I don't do the mileage thing. I keep all receipts and what I pay out like TV, Phone, Health insurance, Van Payment and depreciation ect and claim that.
I just run off of my SS#. I was told you need to make a certain Dollar amount, if you dont then its not worth it. If i become a fleet owner then I would change.
I claim everything that OVM does. (Post #11).
I have LLC status with the state of Ohio since 2002.
I also have been audited 2x since 1997 with no penalties.
I did, however, ask the IRS examiner why I was "chosen" for the routine audit. (My business records include every receipt for every purchase pertaining to my Expediting Business)
She (the examiner) explained that, all IRS returns are run through computers. And . . . it will red flag any return where a home office is claimed. Such as mine.
My accountant, for years, has suggested not to claim the home office simply because it was unnecessary overkill.
BTW, the examiner told me that there are so many fraudulent home office claims (i.e. people signing up for door to door businesses with no intent to make money) thinking they can claim the exemption(s).
Not to say it is illegal to claim a home office exemption as well as mileage, per diem, it only increases your chance of wasting time with the IRS.
I have LLC status with the state of Ohio since 2002.
I also have been audited 2x since 1997 with no penalties.
I did, however, ask the IRS examiner why I was "chosen" for the routine audit. (My business records include every receipt for every purchase pertaining to my Expediting Business)
She (the examiner) explained that, all IRS returns are run through computers. And . . . it will red flag any return where a home office is claimed. Such as mine.
My accountant, for years, has suggested not to claim the home office simply because it was unnecessary overkill.
BTW, the examiner told me that there are so many fraudulent home office claims (i.e. people signing up for door to door businesses with no intent to make money) thinking they can claim the exemption(s).
Not to say it is illegal to claim a home office exemption as well as mileage, per diem, it only increases your chance of wasting time with the IRS.
Yeah, that would do it. Since you can't switch to mileage, time for another van
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One thing for sure, we got to learn as much about how the social security calculation works.
Simply if one hasn't cap the 35 years of work which are paid in for the social security calculation, then it's a good idea to try and find the way to pay social security for the purpose of larger monthly pay out at retirement.
In my instant, I have 40 years of paid in. But it will be calculated based on the highest 35 years. It would not benefit me to continue to pay the self employment tax. Though, to benefit me, I would need to have the annual net income way, way and way beyond the $400 threshold. That ain't going to happen in this expediting thing, Lol...
Expediting business and the deductions kept me below the $400 threshold so that I do not have to pay the self-employment tax. If this is incorrect, please correct me.
Info and link below have some good info on the effects of working and paying into social security after 35 years cap.
How Continuing To Work, Even In Retirement, Can Increase Social Security Benefits
JANUARY 6, 2016
EXECUTIVE SUMMARY
The conventional view of delaying Social Security is that doing so is an opportunity to earn delayed retirement credits, an 8%/year increase in benefits that can be highly appealing in today’s low-yield environment.
However, the reality is that delaying Social Security benefits doesn’t just increase benefits by earning delayed retirement credits. Additional years of working while collecting Social Security benefits can also increase the worker’s Average Indexed Monthly Earnings used to calculate those Social Security benefits in the first place.
And depending on how much additional income will be earned – and how low his/her historical earnings really are – the reality is that continuing to work while getting Social Security benefits can produce a material increase in future payments for some workers, simply because of how benefits are recalculated. In other words, for those past full retirement age (and no longer subject to the Earnings Test), it’s possible to be receiving Social Security benefits while working and have those years added to the Social Security work history to generate higher future benefits as well!..........continue by clicking on link below.
How Continuing To Work Can Increase Social Security Benefits
Simply if one hasn't cap the 35 years of work which are paid in for the social security calculation, then it's a good idea to try and find the way to pay social security for the purpose of larger monthly pay out at retirement.
In my instant, I have 40 years of paid in. But it will be calculated based on the highest 35 years. It would not benefit me to continue to pay the self employment tax. Though, to benefit me, I would need to have the annual net income way, way and way beyond the $400 threshold. That ain't going to happen in this expediting thing, Lol...
Expediting business and the deductions kept me below the $400 threshold so that I do not have to pay the self-employment tax. If this is incorrect, please correct me.
Info and link below have some good info on the effects of working and paying into social security after 35 years cap.
How Continuing To Work, Even In Retirement, Can Increase Social Security Benefits
JANUARY 6, 2016
EXECUTIVE SUMMARY
The conventional view of delaying Social Security is that doing so is an opportunity to earn delayed retirement credits, an 8%/year increase in benefits that can be highly appealing in today’s low-yield environment.
However, the reality is that delaying Social Security benefits doesn’t just increase benefits by earning delayed retirement credits. Additional years of working while collecting Social Security benefits can also increase the worker’s Average Indexed Monthly Earnings used to calculate those Social Security benefits in the first place.
And depending on how much additional income will be earned – and how low his/her historical earnings really are – the reality is that continuing to work while getting Social Security benefits can produce a material increase in future payments for some workers, simply because of how benefits are recalculated. In other words, for those past full retirement age (and no longer subject to the Earnings Test), it’s possible to be receiving Social Security benefits while working and have those years added to the Social Security work history to generate higher future benefits as well!..........continue by clicking on link below.
How Continuing To Work Can Increase Social Security Benefits
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Girl at SS told me it's based on the highest 10 yrs.... the rest doesn't matter....just saying
Oh man, if that's a fact, I'll be set with a very comfortable retirement. Lol...
Yes, I retired at 64 and still got within a couple hundred of max because in my 40's I was killin' it
. That being said, if I had been smart enough to put more $$ in 401K or IRA I could enjoy retirement, but instead I became an expediter 
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There's a lot of jobs out there where it's 20 years and out and you get to collect full pension so you're 35 is out the window
I couldn't find any thing on that. Would be cool though.
Yes, I retired at 64 and still got within a couple hundred of max because in my 40's I was killin' it. That being said, if I had been smart enough to put more $$ in 401K or IRA I could enjoy retirement, but instead I became an expediter
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There ya go. Congrats!
Don't know how many years you've collected. I heard that if you request to stop the payments and pay them back. Then restart again your monthly payment will get even bigger...but there were some regs changed this year and don't know if it effects this strategy.