how much% of my pay check should i hold out each week?

Question

taxes should i hold out i get payed were i pay my own any help would be grate full thks

Answer 1

Go to www.irs.gov
click on the individuals link, then go to self employed and this should help you out.

Answer 2

Is this something new or have you been doing this for awhile? If you have been doing this for the last couple of years then you should go back and look at the effective tax rate you ended up paying (total tax payable divided by taxable income) and come up with a percentage. This will work ONLY if other items have not changed such increase in income, increase in deductions, decrease in deductions. Remember as a self-employed individual you not only pay the withholding but also the employer tax (which you get a deduction for half of this). As your income increases you will get pushed up in higher income tax bracket.

Keep track of any expenses that you have that can decrease this income (expenses paid out of pocket, mileage driving to/from work, etc.). If you income changes a lot the best bet is to calculate your estimated tax amount quarterly and remit payments to federal and state government if necessary since you can get penalties assessed if you are not paying in.

Answer 3

April H has your best idea. I just tkae what I owned last year and divide by 12. Then I get a little extra 5% if it look I make more this year. This just my way and there many others.
You could just save 20% flat rate if you wanted. At least it be in the bank and draw a little interest, very little, but, it should have you covered.

Answer 4

see your accountant.