Author Topic: Got a Bachelor's? Teach English Online for up to $22/hr (Set your own hours)  (Read 14319 times)

gravitysmiles

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What about taxes? I feel like this would end up really raising my taxable income. Thoughts?

the_fella

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I'm always hesitant to do things like this because you're paid with a 1099 instead of a W2. I have never been a 1099 employee, but my understanding is that it makes taxes somewhat more complicated.

Fwiw, many school districts will hire substitute teachers who possess any bachelor's degree. They typically pay by the day. Schools near me average $80-$100 per day. I have only superficially looked into it, so Idk if these are W2 positions or what. I'd assume so, but I am not sure.

CareCPA

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What about taxes? I feel like this would end up really raising my taxable income. Thoughts?
Any money you make will raise your taxable income. Isn't that a good problem to have?

gravitysmiles

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What about taxes? I feel like this would end up really raising my taxable income. Thoughts?
Any money you make will raise your taxable income. Isn't that a good problem to have?

I have a low income at only 38k a year. I'm wondering if I put all the money I made from something like this that requires a 1099 into a traditional IRA (separate from my work 401k), could I not pay taxes on it?

CareCPA

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What about taxes? I feel like this would end up really raising my taxable income. Thoughts?
Any money you make will raise your taxable income. Isn't that a good problem to have?

I have a low income at only 38k a year. I'm wondering if I put all the money I made from something like this that requires a 1099 into a traditional IRA (separate from my work 401k), could I not pay taxes on it?
Without knowing your full tax situation, I can only say that it would be an option, as long as you fall within the guidelines to contribute to an IRA and 401k. (at first glance it appears you do, but I have limited info, so you should verify)

However, without diving into the research, I think you would still be subject to self-employment tax. The form SE starts with income from your Schedule C, and the IRA contributions do not affect your Schedule C profit/loss.

gravitysmiles

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Re: Got a Bachelor's? Teach English Online for up to $22/hr (Set your own hours)
« Reply #55 on: September 06, 2017, 02:26:36 PM »
What about taxes? I feel like this would end up really raising my taxable income. Thoughts?
Any money you make will raise your taxable income. Isn't that a good problem to have?

I have a low income at only 38k a year. I'm wondering if I put all the money I made from something like this that requires a 1099 into a traditional IRA (separate from my work 401k), could I not pay taxes on it?
Without knowing your full tax situation, I can only say that it would be an option, as long as you fall within the guidelines to contribute to an IRA and 401k. (at first glance it appears you do, but I have limited info, so you should verify)

However, without diving into the research, I think you would still be subject to self-employment tax. The form SE starts with income from your Schedule C, and the IRA contributions do not affect your Schedule C profit/loss.

Thank you for this information. I guess making more money always makes it worth it in the end, right?

tj

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Re: Got a Bachelor's? Teach English Online for up to $22/hr (Set your own hours)
« Reply #56 on: September 07, 2017, 05:12:18 PM »
In most cases. Sometimes you are near a tax credit cliff.

ChipmunkSavings

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My first language is French. Is there any market for other languages? I can certainly teach French! I consider myself bilingual, but I sometimes mess up my sentences when I am nervous, so it depends on the level of difficulty of the conversations.