The company makes 100k. As sole proprietor I file jointly with my husband. We pay 11% in Tax a year after deductions.
My student loan payment is based on the company's revenue - deductions + my husbands salary - deductions.
$1200 per month or $14,400 a year. (Which is approx 90% of my income)
OR
The Company makes 100k - 80,000 expenses = 20k
This means the maximum I can pay myself is approx $15,000 + taxes + withholding
As an employee with yearly income of $15,000 my student loan payment would be $210 per month or $2520 a year (Approx 20% of my income)
The Deductions are different.
I am trying to determine if switching to an S-Corp will decrease my deductions, which would increase the total tax I pay. I.E. would it exceed the $12,000 a year I'm trying to save in student loan payments.
