do i just take out for federal taxes are do i have to take out for social security and medicare also
2007-03-24 08:13:00 · 3 answers · asked by sherrie g 2 in Business & Finance ➔ Taxes ➔ United States
Depending on how much you make, you may need to file quarterly tax estimates on form 1040ES.
You will be paying social security taxes of 15.4% plus your federal income tax.
If you live in a state that has an income tax you may need to make quarterly tax estimate payments to the state also.
Usually if you are going to owe $1,000. in tax you should pay quarterly estimates to avoid fines or penalties.
2007-03-24 08:20:34 · answer #1 · answered by Jo Blo 6 · 0⤊ 1⤋
All of the above, though your employer should withhold on you if you are working in 1 household. If you are traveling to different homes to provide specific types of care, you need to withhold (give or take) 25% into a savings account to cover Social Security, Medicare & income taxes. Otherwise, you will be in a pickle when it is time to file taxes. BTW, you need to open a separate personal checking account through which to run ALL your self-employment income & expenses. This way, your checking register will help you keep records for your business.
2007-03-24 08:20:55 · answer #2 · answered by Tom's Mom 4 · 1⤊ 2⤋
Social security and medicare also - that will be 15.3% of your net income after you subtract any eligible expenses.
2007-03-24 12:19:22 · answer #3 · answered by Judy 7 · 0⤊ 0⤋