How much money would I put aside for taxes in FL?

Question

I am working part time as an independent contractor, as well as working two other full time jobs that I do pay taxes on, as well as my husband who is has a full time job, and taxes are also deducted, so total we make 50-60k a year on income that is taxed. I now have a home based part time business and I will roughly make about 6-10k a year from this non taxed. Wondering how much I would need to put aside a year to pay the taxes that will be due. Also would I have to file two seperate taxes returns, one for me & my husbands main tax paying jobs, and then another for my business?

Answer 1

You only need to file 1 tax return, put your wages on line 7 of 1040 and file a schedule C and SE with your return to report your self employment profit.

I am going to make some assumptions and then give you a conservative estimate.
I will assume you will break even, no refund no balance due from your wage income and assume that you made 10k profit from your self employment income. This will tell you how much you need to send in for estimated taxes and you should have the refund or balance due you usually have when you file your return.

60,000 adjusted gross income
-10,700 standard deduction
- 6,400 2 exemptons
52,530 taxable income

With a $52530 taxable income you will be in the 15% marginal rate.

10,000 profit from self employment
1,413 Self Employment Tax
1,500 Income Tax
2,913 in total estimated tax
$0 State of Florida income tax

The 2913 is enough that you will probably be subject to an estimated tax penalty if you don’t pay estimated taxes to the IRS.

Answer 2

You should be in a 15% tax bracket on your total income on a joint return. So on your business income, you should figure around 30%, 15% for income tax and the rest for self-employment tax (for social security and medicare), That's on your NET income from your business, after deductible business expenses are subtracted. You should be filing a quarterly estimated return on your business income on a form 1040ES, and sending them the estimated tax amount on that with each quarterly return.

You'll file one joint 1040 and show all of your job incomes on there for the two of you. Your business income and expenses will go on a schedule C (or C-EZ if you are eligible to use that), and then you'll fill out a schedule SE to calculate your self-employment tax on the net income from the schedule C. The bottom numbers from both of the schedules will transfer to your 1040, the one that also has your income from your jobs.

Answer 3

As Judy and Charlie pointed out, you don't file separate return for the business; you attach schedule C (form 1040) with your Form 1040. You can file only one return as Married Filing Jointly or file separate returns as Married Filing Separately. Married Filing Jointly should be more convenient.

On your self employed income you pay Self employment taxes @15.3%. For this you will also file Schedule SE with 1040. So make a provision for this amount.

Assuming you will file as Married Filing Jointly and your taxable income (income minus deductions) is between $15,650 and $63,700, then your total federal tax is 1,565.00 plus 15% of the amount over 15,650. Thus you can find out your total federal tax. This amount minus federal tax withheld by employer is what you should make provision for.

Finally you may have to make provision for State tax (depends upon your state).