Jsut as an example lets say I make $1000 a month, how much will I need to pay to Federal (we have no state in TX), SS & Medicare & anything else I may be missing.
Also anyone who is in this situation, is it better on the taxes for you so far?
2007-07-04 17:00:06 · 2 answers · asked by HG 1 in Business & Finance ➔ Taxes ➔ United States
Social security and medicare will be 15.3% of your net (after expenses). If you were working as an employee, you'd only pay half of this, and your employer would pay the rest.
Federal income tax will depend on your personal circumstances. If you are single, no dependents, not a dependent, no extra deductions or credits, and net $1000 a month, you'd owe around $335 for the year.
You will need to file quarterly estimated returns and pay the estimated taxes for that quarter.
2007-07-05 02:50:50 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You are supposed to file quarterly and you need to pay all of your social security tax, the full 15%. If you were employed by someone else, they pay half of that usually. The upside is that you can deduct expenses related to generating your income. You should probably meet with an accountant to have them set you up with a bookkeeping system you can live with and manage and teach you about deductable expenses and maybe even how to charge so you are sure to have prices that cover all the things you have to pay now.
2007-07-04 17:05:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋