I want to know how can I calculate how much tax I pay at the end since I know it's not taken away but at the end I pay all of it? I just want to know how all that works? Thanks.
2007-05-16 14:55:02 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Your tax rate is the same amount based on your income bracket just as if you were working as a employee for a company. The good news is you can deduct legitimate business related expenses for your 'home office', transportation, etc and lower the amount of your taxes due. You may possibly even lower your tax bracket percentage. 1099 employees are considered contractors and are responsible to pay their own taxes less allowed business expenses. Some states require you to pay quarterly or monthly tax estimates or you will be penalized when you file at tax year end. They want their money. So do the Feds. 1099 employees have to be disciplined to put aside the tax dollars until time to send the money in. My advice is to consult an accountant and discuss legitimate business expenses and have him/her prepare you a schedule to follow. Ask the accountant on the phone what the fee would be for a one hour consult? Good luck!
2007-05-16 15:56:40 · answer #1 · answered by Harley3000 2 · 1⤊ 0⤋
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2016-07-22 05:51:50 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Download the Form 1040-ES package from the IRS website. The worksheets will help you to estimate your income and taxes so that you can make the quarterly estimated tax payments correctly. If your total tax liability will be more than $1,000 you MUST make quarterly estimated payments. If you wait until you file to pay, you'll be hit with penalties and interest for underpayment of estimated taxes.
BTW, you don't fill out a 1099. The company that pays you will send you one at the end of the year. It's up to you to keep accurate financial records of your income and expenses and verify the numbers that the company puts on the 1099.
2007-05-16 15:01:13 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Hard to say without knowing how much you would make, what your other income is and what your expenses would be....but estimate about 25% for federal tax (plus whatever your state rate is). Don't forget to check your locality/city--you may need a business license & have to pay taxes to them too. These estimates should only be used to decide if it's worth it to you. If you actually do it, go to a tax pro once to get set up for the year.
2007-05-17 03:38:14 · answer #4 · answered by Dee 4 · 0⤊ 0⤋
The greater number of allowances you report the less withholding that will be taken from your paychecks. Withholding has nothing to do with how much tax liability you may have at the end of the year. If all of those folks are your dependents you should not have much tax liability at the end of the year. S-4 would do fine in that case, however you should not expect a large refund as you will have not put any withholding into the pot.
2016-05-20 15:52:21 · answer #5 · answered by jessica 4 · 0⤊ 0⤋
15.3% of your net income for self-employment tax. Net income is whatever you take in, minus any associated deductible expenses for earning that money.
This is in addition to income tax. Income tax will depend on how much your income is, your filing status and other things about your personal situation, so it's not possible to even estimate that.
If your state has an income tax, figure that too.
2007-05-16 15:26:57 · answer #6 · answered by Judy 7 · 2⤊ 0⤋
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2016-07-09 01:18:38 · answer #7 · answered by Rosalie 3 · 0⤊ 0⤋