I am new to having to 10-99 myself and I would greatly appreciate any answers or info about this.
2007-03-06 11:11:17 · 5 answers · asked by Mark S 1 in Business & Finance ➔ Taxes ➔ United States
yes, you should get some professional tax planning help. but, aside from that, if you are single and make about $31,000 then you are in the 15% tax bracket. then up to $74,000 you are in the 25% tax bracket, so use those %'s for rough estimates for how much to put aside, but you should make quarterly estimated payments to the IRS to cover those taxes, or increase your withholding if you have W-2 income too.
2007-03-06 11:49:36 · answer #1 · answered by RichManPoorMan 2 · 0⤊ 0⤋
I'm not sure what you mean by 1099-ing yourself - you don't send yourself a 1099. But I'm assuming that you're working as self-employed or independent contractor, so have to pay your own taxes.
You'll need a little over 15% for self-employment tax - this is for social security and medicare.
Your federal income tax amount will depend on how much your income is - the tax can be anywhere from zero to 35% depending on your total income and your deductible expenses. Also depends on your filing status, dependents, deductions and adjustments. If your net income isn't over $40K or so, another 15% would probably cover your federal taxes.
Depending on where you live, you might owe state and/or local income taxes. This again can be as low as zero, or much higher depending on where you live.
Sorry not to be able to give more info, but would need more information from you to do so.
2007-03-06 19:58:37 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Don't forget to hold back another 15-16% if the 1099 is for earned income and reported on Sch C. You will have to pay self-employment taxes on your net profit from Sch C of 15.3%.
I suggest a good rule of thumb is to save 30-40% overall depending on how much non w-2 earned income you make each year.
2007-03-06 20:00:25 · answer #3 · answered by RAG 2 · 0⤊ 0⤋
If you are a low-income taxpayer with children, you may not need to withhold anything.
If your net income from your job is high enough to owe tax, withhold 15%- 25% of your net profit and send it in quarterly for taxes.
It is best to try to forecast your income and have a tax preparer estimate your estimated tax.
2007-03-06 23:20:04 · answer #4 · answered by ninasgramma 7 · 0⤊ 0⤋
i don't know the answer but remember that you can write stuff off...you might want to get in touch with a good cpa
2007-03-06 19:19:29 · answer #5 · answered by dotdotdot 5 · 0⤊ 0⤋