
Originally Posted by
Melonie
If you don't have established credit, there may also be an issue of 'front money' i.e. having to put down more than just the first + last month's rent plus a 1 month's rent worth of security deposit prior to moving in, with another month's rent payment being due a month later. If you don't have established credit, electric, cable TV and other utilities sometimes require a 'front money' deposit as well before activating your service. These possible 'front money' requirements won't affect your budget over the long term, but might require you to stay with your grandparents longer to save up the additional cash.
also, with a ~$50,000 annual gross income between dancing as described plus a part-time 'straight' job, between self-employment tax, federal income tax, Michigan income tax, and the ACA 'penalty' tax, your estimated 30% withholding may be a little light. The main reason for this is that your effective tax rate depends on total earnings, but your 'straight' job employer is only withholding enough in estimated taxes from your part time paychecks to cover an $8,000 ( or whatever ) total income level. To compensate for this, you'll need to withhold extra money from your dancing income to cover additional taxes due on your 'straight' job income.
Bookmarks