Taxes in Florida for an Independent Contractor?

Question

Currently I work as an Independent Contractor and have from mid May of 2007 to now. I reside in Florida and was wondering how much money I need to be setting aside to pay taxes?

YTD, I have made approximately $6200.00

I am about to get a job as an actual employee and will most likely be quitting this one. Approximately how much am I looking at to pay as of now? If I weren't to quit, is there a ballpark percentage of how much to expect to pay so that I can figure this out in the future?

Thanks for any help/advice you can give!!

Answer 1

Independent Contractors pay a (federal) self-employment tax of 15.3% of 92.35% of their earnings, plus regular federal income tax. Also, you are required to make four payments, by the 15th days (if the 15th is a weekend or holiday, then it is extended to the next business day) of April, July, September, and January. [Setting it aside without sending it to the IRS on time results in a penalty.] To calculate the amount, you use Form 1040-ES. You can download this form from http://www.irs.gov/pub/irs-pdf/f1040es.pdf (first time filers), http://www.irs.gov/pub/irs-pdf/f1040esn.pdf (non-resident aliens), or http://www.irs.gov/pub/irs-pdf/f1040ese.pdf (all others), if you do not have one.

I do not know if there is also a Florida tax on self-employment.

Answer 2

There are way too many variables to give you an accurate answer.

....but just for shits and giggles:

If this $6200 was your only income this year and you have no expenses to offset against it and your are single and no one claims you as a dependent, you would owe $876 in self-employment taxes. This number with change as your other income gets added and withholding from the new job gets credited.

Answer 3

The time table C (or C-EZ), and time table SE, would be filed with a form 1040 sometime between mid-January and April 15 next 12 months. you may wait to deliver in quarterly taxes (with form 1040ES) till you're making $4 hundred in case you want to. truly in case you will owe decrease than $a thousand entire for the se tax plus any earnings tax, you may merely wait and pay once you report your return next 12 months, so in case you in straightforward terms assume to make some hundred funds, i does not issue with the quarterly funds. in case you report quarterly returns, sending around 4% of your expected earnings could be high quality.