i want to start doing in home care privately?

Question

how do i go about paying my taxes? can i pay weekly or monthly? is it expensive . what taxes do i have to pay? just state and city?i live in california if that helps.

Answer 1

You'd pay quarterly estimated payments to the feds, state and city if your city has a local income tax. The tax would be the same as if you were working for an employer and having it deducted, except for social security and medicare - normally the employee only pays half of that and the employer matches it - if you're working in your own business which it sounds like you would be, you'll pay both halves for a total of 15.3% of your net income rather than 7.65%.

Answer 2

It depends on where you are doing the in-home care.

If you are doing it in your home, then you are self-employed, and you need to keep track of income and expenses. Income tax will be due on any amount above the "filing requirement" amount based on your filing status. Self-employment tax will be due on any yearly profit over $400. Both should be paid through quarterly estimates if you will owe more than $1000.

If your performing the in-home care in someone else's home, you may be considered a household employee of the person who hired you, and they could be liable for half your social security and medicare tax, and may be required to withhold income tax from your payment.