How much should I take out of my own paycheck for taxes on a 1099?
How much should I take out of my own paycheck for taxes on a 1099?
I live in FL and this is my first year working entirely on a 1099. I expect to make about 22k by december. How much can I expect to pay in taxes if I deduct the regular gas, gizmos, etc. amounts??? I know the answers to these questions are usually complicated with a lot of numbers, so the more straightforward the answer, the better. :)
Answers:
kwflamingo: Plan on at least 1/3 - this is a good base - you will then either get money back or have to come with just a small amount if you owe.
2008-07-15 12:57:04
2008-07-15 12:57:04
Judy: Without more info, like your filing status and how much your total business expenses will be, no way to give a good estimate. You do realize that auto expenses going from home to your main place of business and back are not deductible?
If your net after expenses is $20K, your self-employment tax would be around $2826 - that's for social security and medicare. Your income tax on the $20K if you are single and have no extra deductions or dependents would be around $1200. FL doesn't have a state income tax so you're OK there. So figure most likely a little more than $4000. You need to be making quarterly estimated payments with form 1040ES.
2008-07-15 12:57:22
2008-07-15 12:57:22
Chosen Answer
acmeraven: Florida; no income tax state. For purposes of federal you need to figure about 30% on the net. You know the gross of 22K; add up your expenses, mileage in 08 is 58 1/2 cents a mile, supplies, any other expenses, don't forget the cell phone of you use it for business. Here is an example: gross 22K, total expenses 6K to subtract leaving you a net of 16K. 16K times .9235 equals 1477.60 times .153 gives you the sum of social security (FICA) you will owe on your self employment income which is 2260. For federal income tax on 16K subtract half of the fica; 1130, and you have 14,870; single-subtract 5,400 for 9,470; subtract for your dependency 3,450 and you have a taxable income of 6,020; which will mean a federal tax of 602. Add the two together and you have a total owing on the 16K of 2,862.00. If you give me an exact net figure I will send you back your exact tax due to the penny. Have a wonderful day.
2008-07-15 14:18:38
acmeraven: Florida; no income tax state. For purposes of federal you need to figure about 30% on the net. You know the gross of 22K; add up your expenses, mileage in 08 is 58 1/2 cents a mile, supplies, any other expenses, don't forget the cell phone of you use it for business. Here is an example: gross 22K, total expenses 6K to subtract leaving you a net of 16K. 16K times .9235 equals 1477.60 times .153 gives you the sum of social security (FICA) you will owe on your self employment income which is 2260. For federal income tax on 16K subtract half of the fica; 1130, and you have 14,870; single-subtract 5,400 for 9,470; subtract for your dependency 3,450 and you have a taxable income of 6,020; which will mean a federal tax of 602. Add the two together and you have a total owing on the 16K of 2,862.00. If you give me an exact net figure I will send you back your exact tax due to the penny. Have a wonderful day.
2008-07-15 14:18:38