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Post by subject1234 on Feb 26, 2016 1:06:54 GMT -5
new here to the study world I've only been in a second study and I'm looking to do this full time curious to know how you can use this as proof of income if you decide to get a car at the dealership? Thanks
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Post by ac on Feb 26, 2016 14:13:56 GMT -5
You should be filing taxes so just show them your tax return. You could also show them your pay stubs.
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Post by vark on Feb 28, 2016 8:21:41 GMT -5
I have never financed a car through a dealership, so take this with a grain of salt. Generally, in fact, you should finance a car through your credit union or bank, because the dealership's term for a customer who can't afford to pay cash is a "mark" and the transaction is called "ripping your face off" if you pay anything close to sticker price, and then each additional finacing fee is a "bump" you'll never see coming. But anyway, they either want your 3 most recent tax returns or your three most recent financial statements. Financial statements are the way to go because it gives you a little more wiggle room. Use google and your friendly neighborhood financial planner/accountant/loan shark.
There are two ways to declare study income when you are new, as "other income" or as "self-employment income". With you only having done two studies, "other income" works fine for now. The advantage is you dont have to pay FICA/self employment income. I am not your tax lawyer, this is just a general guideline, consult a professional. If is possible that expense deductions work a bit differently under "other income", i don't have a good handle on that. Key insight is that under either "other income" or "self-employment income", you pay tax on your net, not your gross, so you ... caveat: i realize now i know very little about how "other income" is taxed so i'm just guessing here.. i myself file as self-employment income so that's all i've researched... so you deduct your expenses from your gross to reach your net. the irs, let's say, strongly encourages self-employed people to file quarterly statements of estimated income, with the estimated payment. so if you went to the dealership with your 3 previous years of tax returns, from regular jobs, showing you've been employable,and then show a current quarterly estimated income statement, showing your most recent study, less expenses, with a payment made, it will look like you are taking this seriously. multiply that by 4 and they will have some idea of what you hope to make and can figure out if that's enough to finance you. the good thing about having a car and doing studies is you can deduct, currently, 56 cents a mile as an imputed expense. that may go down a bit the next time they adjust it as gas prices have fallen. soing with good mpg so you can drive to texas or florida or wherever.
but even if it is, you are new at this and it's all kinda speculative, so they will probbaly only be financing you if they are ripping your face off by charging you too much either for the car or the financing. so go get a loan commitment from your credit union before you talk to the dealership. when you find the car you want, research the hell out of it online, find out where they are overchargiing you. they will be. get quotes from 3 dealers online, keep playing them one against the other. you'll still get bumped. when everything is finally ready to sign, walk away for 24 hours to cool off. then come back and sign.
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Post by subject1234 on Mar 8, 2016 13:55:20 GMT -5
Thank you
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