Income for the quarter, with deductions is $17,000.What will the approximate tax be? Self-employed.
2007-09-02 16:03:33 · 3 answers · asked by kolorz 4 in Business & Finance ➔ Taxes ➔ United States
You'll pay a little over $2400 for self-employment tax for social security and medicare. You'll also pay income tax - that amount will vary according to your personal situation. If you are single, no dependents, figure around $2850, so your quarterly estimated payment should be around $5250.
2007-09-02 18:01:38 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
The 20% rule is OK for witholding, but to know the approximate tax will be 12.4% of income (for social security and medicare) plus your tax bracket from last year (15% or 25%). This depends on if you are married or single and if you expect to make $17,000 each quarter (or if this one was especially good). Another big one is if you have other income (since the social security tax is limited to the first $94000 or so). It also depends on kids, if you own a home, and if you want to have a large refund or not. If you tend to owe taxes, send in 25 to 30%. If you have a lot of write offs, the 20% should be enough.
2007-09-02 23:52:29 · answer #2 · answered by Patrick S 3 · 1⤊ 0⤋
figure 20%
2007-09-02 23:08:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋