How do I find out how much to take out in taxes if I am a self-employed individual with a cleaning business?
2006-10-24 04:39:32 · 3 answers · asked by amber v 1 in Business & Finance ➔ Taxes ➔ United States
You will owe self employment tax of 15.3% on your net income. You will also owe federal and state income tax on your taxable income. I usually advise my self employed clients to reserve 30% for their taxes. If you make over $40K you may need to save more. In some states you may also be required to collect sales tax. Check with your state department of revenue.
2006-10-24 05:54:12 · answer #1 · answered by daoco 4 · 0⤊ 0⤋
Below is a link to the IRS page for Self-Employed Individuals. I don't know may of the rule myself, but I suspect you need answers to more questions than just how much to set aside for taxes.
2006-10-24 13:19:07 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
You need to provide more specific data for a correct and complete answer. The only thing I can give you correctly based on info now is that your FICA tax is 15.3%; past that I would need to know your filing status, dependants, yaddah.
2006-10-25 04:26:20 · answer #3 · answered by acmeraven 7 · 0⤊ 0⤋