2006-11-10 01:50:01 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If your schedule C income is $400 or more, then you are legally required to to file a federal tax return and pay self-employment taxes of 15.3%. You would not owe any federal income tax until your taxable income exceeded your standard or itemized deductions and your personal exemptions.
2006-11-10 02:32:17 · answer #1 · answered by Andreas 3 · 1⤊ 0⤋
Federal Income Tax (varies based on amount)
State Income Tax (if applicable)
Federal Self-Employment Tax - 15.3% (technically its about 14.13%)
Combined, these taxes can add up to 30-40% of you self-employement net income.
As an independent contractor, keep track of all your expenses related to this income. The expenses can be used to offset the income and reduce your taxes.
2006-11-10 02:11:03 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
There are few different taxes.
1- Sales TAX, need to find out from your state tax codes. different states are different.
2-Self employment TAX (Form C ) where you pay employment taxes. Like social security, medicare, etc
3- Income TAX; which is the same for all in the same income range, of course depending on your deductions.
2006-11-10 02:39:54 · answer #3 · answered by shahab 2 · 0⤊ 0⤋