Do Well: Is A Home Business For You?

Is A Home Business For You?

Whether you’re trying to supplement the family

income or just need extra money for a

project, you may be considering a second

job. But not all part-time jobs are created

equal. The type and location of the job can

determine whether it will be profitable. Jobs outside the home

provide a steady paycheck, but come with hidden expenses that

could cost as much as they bring in. Work-at-home jobs may offer

wonderful flexibility and potential for good return, but they also

have hidden costs that should be evaluated. Reviewing the costs of

each will help you decide which type of job will be most profitable

for you.

Working Outside the Home

A steady paycheck with no overhead or marketing burdens

appeals to most people. It’s simpler to check in and out of work

than to worry whether the business is doing well or if it needs

maintenance. However, this type of job comes with its own unique

expenses that need to be evaluated against the benefits. Some are

more obvious, such as daycare and parking fees. Others are hidden.

Here are questions to help you make a wise decision about working

outside the home:

Q. Will the extra

income bump your

combined family

income into the next

higher tax bracket?

Knowing where

your income lies on

the Internal Revenue

Service’s tax chart is

very helpful in deciding

if a second job will be

worth it. If you are close to

the edge of one bracket and the

earnings from your part-time job

bumps you into the next bracket, you will

be bringing home less of that extra income. Take a look at last

year’s taxes and see where your income fell, then add the anticipated

income of the second job to see if your income falls into the

next tax bracket. The bracket breaks are at $20k, $40k, $60k and

$100k. Any income that falls over a bracket break gets taxed at

the next highest rate.

I will continue this topic later this week!
~Jonni