as a new subcontractor in ohio how much can i expect to pay in taxes?

Question

liv in ohio and i will be a flooring sub contractor maried with 3 children

Answer 1

Oh boy, you're not going to like the answer to this one! You will owe income tax at your federal rate, along with 15.3% self-employment tax, along with the Ohio state income tax (which is quite substantial, as I recall). So, if you're in the 15% federal income tax bracket, you could be conceivably paying at least 35% of your income in taxes. Yikes! Obviously, you're going to have some expenses to deduct against that income (like liability insurance, mileage, supplies, etc.), but my advice to you would be to set aside in a separate bank account at least 30% of every paycheck to accommodate the income tax you may owe. Also, you're going to need to file quarterly estimated payments with the IRS on 1/15, 4/15, 6/15 and 9/15 of every year. Sounds like fun, doesn't it? I've been doing tax work for 20 years, and every new business owner is shocked at how hard they're working with so little cash to show for it at the end of the year.

Best of luck!