How much tax do I have to pay for an online business as an individual?

Question

I joined an online company a couple of months ago, I have made profits, and I was wondering how I go about filing taxes for it. I filled out a W-9 with them before I was qualified to receive commissions, if that means anything.

I live in Georgia and was wondering about how to handle state taxes as well. Any help would be appreciated!

Thanks!
-Steph

How much should I set aside, percentage-wise?

Okay, in answer to Judy's response, I am married, but I will be filing this separately from our other income (mainly because my husband wants it separate). I have no dependents.

Answer 1

Since they gave you a W-9 it sounds like you're acting as an independent contractor or freelancer for this online business. The W-9 does not allow them to withhold taxes directly from your pay. So, after the end of the year, you will receive a 1099 form from the business. You will use this form to report your earnings on your 1040 individual tax return. Since no taxes have been taken out of your commissions so far, expect a larger tax bill than what you're probably used to in the past. I would suggest you start putting some money aside for taxes if you haven't done so already.

Answer 2

The percent depends on how much total income you have, and your filing status and how many dependents if any you have, also deductions and adjustments. If you are married, that would include your spouse's information.

You'll pay at least around 15% for self-employment tax (social security and medicare) plus whatever income tax you owe including any state and/or local taxes.

If you are going to owe over $1000 at the end of the year, you don't just set it aside, you file quarterly returns and pay it in then.

Sorry, can't give you a better answer without the info above.

Answer 3

this would nicely be a business enterprise, would be suggested on Sch C, and if the 'internet' quantity is $4 hundred or greater you will additionally report Sch SE the place you calculate your self employment tax, approx. 13.3% of the Sch C 'internet' and confident, prepayments of your estimated taxes, which consists of earnings taxes would be paid on 1040ES each and every quarter with basically the final 2 final for 2012, Sept 15(easily the seventeenth) and Jan 17, 2013

Answer 4

It sounds like you will get a 1099 from the organization as an independent contractor, which you will just add in as ordinary income and deduct expenses and such from.