As a mystery shopper, you know your independent contractor pay must must be reported in accordance with IRS regulations. I assume you also know the tax code is progressive with an increasing tax rate in bands as your income increases. This is an income tax. There are seven federal income tax rates and brackets in 2023 and 2024: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
Did you also know that Long-term capital gains tax is a tax applied to assets held for more than a year. The long-term capital gains tax rates are 0 percent, 15 percent and 20 percent, depending on your income. This is capital gains tax. These rates are typically much lower than the ordinary income tax rate.
This is why it's best to be a saver and enjoy the magic of compounding. Plus you get to increase your net worth while you sleep.
Once you understand these fiscal tax fundamentals, you come to realize that having your money work for you is better than you working for money.
Edited 1 time(s). Last edit at 01/30/2024 11:08AM by maverick1.