I am a contractor. My AGI is generally 100K. If I am paid $6300 from someone, how much should I save of this to be sure my taxes are covered? I am in CT.
2006-12-10 10:55:40 · 3 answers · asked by Mark R 2 in Business & Finance ➔ Taxes ➔ United States
The truth is if you are an independent contractor you will need to pay self-employment tax estimates (.1532)with your federal income tax estimate on your form 1040ES. Go to IRS.GOV to get the tax schedules.
Go here to make your CT estimate: http://www.ct.gov/drs/cwp/view.asp?a=1433&q=265886&drsNav=|
2006-12-10 11:06:15 · answer #1 · answered by Jessica M 4 · 0⤊ 0⤋
Hi, Was in const. in NJ many years.Have a sit down with an accountant and discuss federal and state tax obligations! Have them set you up with some quarterly federal payments. I always figured 25% for taxes depending on expenses. Also, very important, there is a fine line on State Taxes! Be careful! New const. you do not charge or pay sales tax. Repair work is taxable and payable so you may have to make quarterly payments on that also.
2006-12-11 00:56:39 · answer #2 · answered by medelectric2002 1 · 0⤊ 0⤋
You probably need to pay 25-28% for federal tax depending on whether you're married or single, 15.3% for self-employment tax, another 3-5% for Connecticut, so putting back half would give you a little cushion, but not much.
You need to file quarterly estimated taxes for federal, paying what you owe for that period.
2006-12-10 19:37:19 · answer #3 · answered by Judy 7 · 1⤊ 0⤋