2007-01-29 11:39:37 · 4 answers · asked by Informed New Yorker 2 in Business & Finance ➔ Taxes ➔ United States
15.3% for Self Employment tax + a sufficient amount to cover your State and Federal income tax liability. How much you need to set aside for income tax depends upon your income.
You don't just need to put it aside, you need to make quarterly payments to the IRS using Form 1040ES. If you don't make estimated payments, there may be penalties and interest for underpayment of estimated taxes. Most states with an income tax also require estimated tax payments.
2007-01-29 11:50:05 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You will have to make estimated quarterly payments for your taxes using form 1040ES for federal. If your state has an income tax, you should probably make quarterly payments there also. First of all, set aside 15.3% of your net income for social security and medicare. Net income is what you make after subtracting expenses. Your drive to and from the airport from home is commuting to your main place of business, so that mileage wouldn't be deductible. You don't say what state you're in, but if your state has an income tax, you'd have to pay it at whatever your state rate is. Some municipalities also have an income tax. Federal income tax depends on your total income for the year. I'm a little unsure of what you're saying that your total income for the year is. If you're saying $700 per week plus $65 per day for five days in the week, then that would be a little over $1000 a week, and you'd pay around 15% of that overall for federal income tax. It's somewhat hard to picture a flight attendant job that would legitimately be considered a 1099 job - more likely you should be classified as an employee and have taxes withheld, the employer would pay the social security match (he'd pay 7.65, you'd pay the same instead of 15.3%), and you'd get a W-2 at the end of the year rather than a 1099.
2016-03-29 08:51:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Put aside 40% for Federal - this covers FICA tax at 15% and regular tax of about 25%. Your state tax rate should also be set aside - most states are about 5%. This totals 45%. Yikes! Makes you want to get a W-2.
2007-01-29 11:46:26 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋
Yep, about 50%...
Your FAIR share?
2007-01-29 11:48:28 · answer #4 · answered by C W 2 · 0⤊ 0⤋