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Old 04-30-2018, 10:29 PM
 
3 posts, read 1,778 times
Reputation: 10

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Hello, my name is Raphael. I am going to be very transparent and forthcoming in my post so as to get the most accurate information and advice possible. I have been working for a title searching company now in NJ for almost 2 years as a subcontractor, getting a 1099 tax form at the end of the year. Title searching involves searching properties being purchased or refinanced throughout all of the counties in NJ for mortgages, deeds, liens, and any other encumbrances. I make on average in gross income about $25,000 in a year. I do write off quite a bit, all legal, and by the books. It ends up adding up to almost what I made the entire year. If I didn’t have any write offs my initial income tax owed would be somewhere around $5,000. I find it ridiculous that NJ can take away 20% of my earnings it’s like highway robbery. The owner of the business has about 8-10 employees with 50% covered health coverage and a 401k plan for his salaried employees. I know that the company grossed $1,000,000 and then some this past year. He pays himself at least $120,000 a year but most likely more. The other employees’ being paid costs around $300,000 and then of course there are business expenses. Here go some questions.

1. I’m curious what an expert or someone with experience in this would estimate his owed income taxes to be.

2. I am interested in opening my own business as an llc single owner operating with just one person (myself) in New Jersey actually unrelated to title searching. I originally wanted to do a food truck, however I’m thinking a food cart may be a better route to start off on weekends that way I don’t have to take such a huge risk and quit my day job on a whim. I’m wondering currently as a subcontractor, and into the future as a business owner how I can get health insurance and what would an average cost be on a month to month basis for modest coverage.

3. Let’s say I made $200,000 gross income minus expenses one year of let’s say $120,000; or same scenario with only $60,000 in expenses/write offs, how much income tax would I owe, and would I be able to file taxes as one with my company and myself as a person?

Thank you for any advice
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Old 05-01-2018, 10:27 AM
 
Location: OH->FL->NJ
16,934 posts, read 12,475,636 times
Reputation: 8856
Cannot answer your question well BUT when I moved here there was a partial year income tax rate around 3% for my first partial year here and I made more than you did.

I believe the 20% is a withholding rate subject to your return just like the so called exit tax which everyone pays but you can get most of it back.
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Old 05-01-2018, 11:11 AM
 
171 posts, read 108,395 times
Reputation: 187
I think I'd look for another tax preparer as 2017 New Jersey Income Tax Brackets were

Tax Bracket Tax Rate
up to $20,000.00+ 1.4%
$20,000 -$50k 1.75%

obviously this does not include your allowable deductions/exemptions etc.....
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Old 05-01-2018, 11:37 AM
 
3 posts, read 1,778 times
Reputation: 10
I’m sorry I forgot to mention I was actually referring to both federal and state taxes together. So in that scenario really what I was saying was on 25,000 in gross income my income tax for both federal and state together would be something like $5000 if I had no deductions to speak of. So for something like a business if I owned the llc If i made 200,000 in gross income just operating by myself and even deducted let’s say $60,000 I’m not sure if I’d be filing with a 1099 form in that case or what but the taxes would be something like 28,000 or something I just cannot believe that I’m wondering how business owners in this predicament pay all those taxes
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Old 05-24-2018, 07:20 PM
 
3 posts, read 1,778 times
Reputation: 10
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