2006-08-14 15:14:35 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
If your employer is Not taking taxes out of your check but Is reporting your earnings to the IRS, then "a good rule of thumb" is hold back $20 for Every $100 you make for taxes just to be safe!
Please note that people who are personally responsible for paying their own taxes are Supposed to "Pre-Pay" estimated taxes EVERY quarter (every 90 days) or you will pay a penalty when you file at the end of the year.
Check with a good CPA. THEY know the tax laws which Do change every year! Good Luck!
2006-08-14 15:32:23 · answer #1 · answered by thart090 3 · 1⤊ 1⤋
Depends on how much you make - take your annual salary, deduct exemptions (children and standard exemption or Schedule A) - take what's left and see what % tax bracket that puts you in - then correllate that dollar amount to how many deductions you need to take on your W4 Withholding statement - there are calculators on the net that can give you a good estimate.
This is a good one:
http://www.yourmoneypage.com/withhold/reverse_fed.cgi
2006-08-14 22:19:59 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Call anaccountant and find out the tax rate you're in and then put aside that amount. The tax department can even do an automatic debit of your account so you don't have to remember.
2006-08-14 22:23:01 · answer #3 · answered by intaleckshul 1 · 0⤊ 0⤋
If this is your only income, your employer will deduct the proper amount and send it in to the IRS. All you have to do is tell them how many people are in your family.
If you have other income generally you should have an extra 15 to 20 percent of the added income taken out.
2006-08-14 22:35:16 · answer #4 · answered by newconcepts789 1 · 1⤊ 0⤋
Depending on how much you earn, and what your deductions will be, it should be about 30% of your Gross Adjusted Income.
2006-08-14 22:19:37 · answer #5 · answered by Heatmizer 5 · 1⤊ 0⤋