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Old 06-24-2007, 02:53 PM   #1
Qazworld
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Default Let's say you make 200K on your script...

what do you walk away with after taxes, agent fees, manager fees, etc?
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Old 06-24-2007, 03:34 PM   #2
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Default Re: Let's say you make 200K on your script...

Let's say 25 % of the gross for assorted fees.

50 % of what's left.

$ 75 K

Or not.
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Old 06-24-2007, 03:45 PM   #3
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Default Re: Let's say you make 200K on your script...

The highest tax bracket is around 40%, so you should walk with 60% or 2/3s of the total. So I'd say --

200k
-50k for agent/manager/lawyer
----
150k take home, taxed at 33%
x.33
----
$100k

Plus that $100k is essentially 1099 income, which means you can incorporate. Which means that you take home the $150k and then look for every reason to deduct business expenses (your car lease, your office, your cable, your Netflix subscription, your paper, your computer, your mileage), etc, etc.

Working writers should have good accountants that will make the $ go much further than, say, if you were receiving a traditional paycheck.

In other words, that $150k you take home is a much better $150k than making that as a lawyer where you're receiving a salary.
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Old 06-24-2007, 06:55 PM   #4
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Default Re: Let's say you make 200K on your script...

state and federal?
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Old 06-24-2007, 07:28 PM   #5
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Default Re: Let's say you make 200K on your script...

Quote:
Originally Posted by Han Shot First View Post


In other words, that $150k you take home is a much better $150k than making that as a lawyer where you're receiving a salary.
I doubt it. You're taxed on the gross. Commissions are deductions, but you're technically being taxed for 100% of the salary you only receive 73.5% of. (no one ever throws in the 1.5% to the WGA, but believe me, those dues add up).


When all is said and done, it's too depressing to think about.
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Old 06-24-2007, 10:25 PM   #6
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Default Re: Let's say you make 200K on your script...

Quote:
Originally Posted by BestWriterEver View Post
200 - agent - manager - lawyer - guild =147

fed max rate = 35%
california max rate = 10%
- medicare, social security, etc, etc...

around 70k.
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Old 06-25-2007, 08:18 AM   #7
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Default Re: Let's say you make 200K on your script...

Losing over 50% of the quoted value...

Sucks, don't it...?
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Old 06-25-2007, 04:07 PM   #8
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Default Re: Let's say you make 200K on your script...

This is wrong. You're taxed on your TAXABLE INCOME, which the self-employed reduce by deducting expenses such as car, office, paper, computers against. So if you have $200k of total income and you have $50k of deductions for fees and you can prove $50k of expenses, (car, office, blah blah) you are taxed on $100k, which goes into the formula.

Our tax rates are "progressive," so you will only get taxed the maximum amount on the dollars in that high bracket. So if the top bracket is 35% for income over $200k, you don't get taxed 35% on ALL your income, just the amount over $200k.

Total tax (federal, state, social security, etc.) for most people will be about 1/3 or less of their TAXABLE income.

I still say a writer with a good accountant will take home around $100k on their sale of $200k. Still pretty good.
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Old 06-25-2007, 05:46 PM   #9
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Default Re: Let's say you make 200K on your script...

We can go back and forth on this. I have a good accountant. I write everything off possible. I'm incorporated. I'm not netting 50% of my gross income after commissions and taxes. That's just my experience. I'd love to hear who's doing better so I can poach their tax guy.
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Old 06-25-2007, 06:24 PM   #10
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Default Re: Let's say you make 200K on your script...

Fair enough. It sounds like it's not too far south of 50%. But my point was mainly that the (after fee) income you make as a writer should be "better" income than you'd make as a salaried employee because you can deduct more against it.

Still, taking home $80-$90k on $200k isn't terrible as that's a pretty low-end deal and you're still taking home the equivalent of ~$7,000/month.

The trick is putting together more than one of those in a calendar year.
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