Tax Question

[Captain Herb]

• If he earned $100,00, he pays 20-30% in taxes off top.
• AFTER taxes, he then pays $25K for training camp, per your example.

<{cruzshake}>

No. You deduct expenses and other deductions from your gross income (100K) BEFORE you calculate your tax

 

[POWER2]

<{cruzshake}>

No. You deduct expenses and other deductions from your gross income (100K) BEFORE you calculate your tax

You are correct.

 

[Poatan Power]

So according to the IRS numbers I see. 25k is taxable at 12% single or head or household. 75k is taxable at 22%. I’m not sure if you break this up and apply the tax only to the 75k but but that’s what I did.
25k = exempt
75k = 16,500 in taxes.
75k-16,500 = 58,500. So add the tax exempt 25k and you’d bring home 58,500+ 25k= 83,500

Now factor in gym/manager fees.
Somebody tell me how way off, or close I am in simplifying this.

it's close enough. but really the number is 58,500 because you spent and/or owe that 25k to trainers or whatever.