Self employed tax rate?

Question

I'm currently employed in the state of Ohio but may do some consulting work. I claim single zero and am paying roughly 21% tax on about $3300 a month. I'm wondering what I would have to charge to have the same take home after paying taxes via a form 1099 (if I have this all figured out right) at the end of the year.

Any help by chance?

Answer 1

Self-employment tax is 15.3%, but half of that is the social security tax you'd pay anyway if you're working for an employer and getting a W-2. Income taxes are the same. So the only extra you would really pay is the additional 7.65% (the employer half) of social security and medicare. You'd have to get a little over $3570 a month consulting on a 1099 to equal your $3300 a month salary after taxes.

Answer 2

no man or woman has quite responded the question yet, so right here is going. The tax prices are the very similar no matter if you're self employed or an worker. sure, self employed human beings can deduct prices incurred in operating the corporation and this reduces the quantity weak to tax. additionally they income from Capital Allowances on plant. there might want to properly be a small NIC saving, relying on the point of income. Class2 £2.30 pw classification 4 8% from £5435 to £40040 and a million% thereafter.

Answer 3

Ohhhh, so much more than 28%. If you are asking the question, then you will need some professional help from an accountant. I am self employed, have been for years, and still get a shock at the amount I owe to the IRS each year. In a "regular" job the employer pays a portion of your taxes. Now, you will be responsible for both sides.

Best of luck.

Answer 4

Too many variables, but up to 28%