How much is the percentage income tax for self employed?

Question

I have 1 full time job, and the other one is more like part time.
The one that I want to ask is the part time job.
I work as programmer (self employed), how I calculate my income tax?
How much percentage usually? because the regular job is about 25-30% of the salary.
How much should I pay for the tax, for example, if I got a project that will pay me $5000/project, and I'm self employed for this?
In layman term please!
Thanks!

Answer 1

Self-employed (SE) tax is 15.3% of 92.35% of net Schedule C profit. If you are getting paid 5,000 you would need to subtract from that what expenses you had. To make it simple, let's say the 5,000 is your profit. Your SE tax on that would be 706.48 (5,000 x .9235 x .153), on top of that you would also pay your regular federal tax which would be calculated based on taxable income, which would be taking your AGI and subtracting your standard deduction/itemized deduction and then subtracting your personal exemption(s). You would also have to take into account your state income tax as well.

Answer 2

Self-employment tax is around 15% of your net self-employment income - that's for social security and medicare. That would be a little over $700 on your $5000 project.

For federal income taxes, you'll pay the percent that equals the bracket you are in, or maybe a little more. So if you are in a 25% bracket now, figure $1250-$1400 on the $5000 project.

Depending on where you live, there might also be state and local taxes.

Answer 3

What Judy and Tax Lady said. You'll be taxed at 15.3%+your federal tax bracket+your state tax bracket. If you make enough in your first job and you're in a state with high income taxes, the taxes on your self-employment income could go over 50%.

Since you already have a full time job, if you don't need the extra money from your gig, consider opening a solo 401(k) (a.k.a. individual 401(k)). Then you'll just pay 15.3% self-employment tax and stash the rest of the money into the retirement account. You'll pay income tax on that when you retire instead of now.

Answer 4

There are so many variables on this question that could change the taxes on your income. If you take the fact that you self-employment causes you to pay almost 15% right off the top of self employed income, you then need to combine all of your taxable income after deductions and exemptions to find what tax bracket you are in. Income tax and your state taxes, when self employed, are due to be paid quarterly or you can be required to pay penalties and interest when you file your final taxes. You need to pay quarterly taxes on the15th ofApril, June, Sept. and Jan.

Answer 5

Yes, you would be self-employed.
Self-employed: social security and medicare 15.3%
Federal and state taxes are based upon your income less expenses. If no expenses, then use regular tax table you would for federal and state taxes, & just multiply total self-employed wages X 15.3%= ss & mc
W-2 empl 7.65%
employer 7.65%
equals 15.3%
For federal taxes and state I would need to know how you filled out your W-4 for full time job. IN other words, are you single, do you claim, 1, how do you have taxes taken out? Single 1 exemption or what?
Hey, our avetars look similar.

Answer 6

About the same as your job, it dependes on how much you make at the end of the year as to what tax "bracket" you will be in. If you file a Schedule C ( self-employment deductions) be prepared to pay an additional self-employment tax in addition to your regular income tax. The self-employment tax can be as much as your regular taxes! Consult a professional CPA, thats why they are there.

Answer 7

15.3 percent, look at a sample schedule SE on the irs website. By the way, the reason it's 15.3, SS/Med Rate is 7.65 and as a self employed person, you have to pay your portion (7.65) and the employees portion (7.65)