I need to find a SIMPLE way to figure out taxes if I am self-employeed. For federal, state & SSI. Is it too much to ask to find a place that just gives you the formula's and definations for all three? I know my local tax is a flat rate % so I'm not concerned about that. I got more confussed than ever when I "googled" self employment. Thanks for whatever help you can give. All I want to do is babysit for a friend & do some freelance writing so I need to a program for my taxes.
2007-03-31 09:30:14 · 3 answers · asked by Barbiq 6 in Business & Finance ➔ Taxes ➔ United States
Federal self employment taxes are calculated as follows:
Net Income from Self Employment
X .9235
X .153
= Self Employment Tax
The computation gets more complicated if your net profit plus wages exceeds around $90,000 or so (not sure of exact amount). If your income is nowhere near $90,000, then the above formula will work for you.
2007-03-31 13:14:41 · answer #1 · answered by figment_usa 5 · 1⤊ 0⤋
Social security taxes are just a little over 15%. You would have to provide more information for federal and state taxes. There are tax tables available for both federal and state.
2007-03-31 09:36:18 · answer #2 · answered by Jan C 7 · 1⤊ 0⤋
I have heard a self-made millionaire recommend setting aside 25% of income for taxes. This is a rule of thumb, but if it works for a self-employer millionaire, it should be enough for you.
2007-03-31 13:04:27 · answer #3 · answered by STEVEN F 7 · 0⤊ 2⤋