What taxes do I pay as a freelancer?

Question

I'm an 18 year old freelance writer and web designer from Michigan. From January-June of this year, I've made about $3000. I anticipate making another $1000. How much in taxes will I owe to the government?

Answer 1

In the best situation, you would estimate what you owe, and pay that amount quarterly. Contract labor doesn't have all the deductions that regualr employees do. However, the tax responsibility still exists--like FICA taxes, etc.

It also matters how much you make in a calendar year.

I rough estimate is 25% to 33% of your income. Hurts, doesn't it.

I'm a writer too. Do you write at Writing.com?

Answer 2

You shouldn't owe any federal income tax on that total amount. Whether or not you owe state or locan income tax will depend on where you live.

You will have to file a federal return, and will owe self-employment tax of 15.3% of your net income (after any associated eligible expenses are subtracted from what you take in.