Federal Tax Rates

     Part of the Bowman's Money College program is staring your own business as a sole proprietor. It does not matter: what kind of business you start, if you have any business training, or if you even make one cent. (Of course, there is nothing wrong with making money while running this business) The reason you are starting a business is to wrap your lifestyle around your business thus making many of the things you purchase tax deductible.

     For example, you need a cell phone in order to conduct business. You may on occasion use that cell phone during the course of running your business for a personal phone call. That is ok, because you know the vast majority of the time you are using this phone for conducting business. Because you use that phone for business you can use the cost of its operation as a deduction on your tax form.

     I have included recent federal tax rates. You can determine, based on your income for a year, how much you will pay in federal tax. Your goal is to have enough deductions, after your personal deduction allowed by the IRS, to offset the amount of your net earnings, the amount you will pay tax on. If you show no net earnings because of the number of deductions you will not owe any federal tax.

http://www.irs.gov/pub/irs-pdf/i1040tt.pdf