If you live in Indiana and have one child and go to school and gross an income of 40,000 dollars per year by working for yourself as an independent contractor. What would you pay into taxes?
2007-12-05 05:22:06 · 1 answers · asked by Scarlet 2 in Business & Finance ➔ Taxes ➔ United States
Not enough info.
It's not your gross that's taxed, it's your net after allowable expenses are subtracted. Then you'd pay around 14% of that for self-employment tax (social security and medicare) and 3.4% for Indiana income tax. You might also owe a local income tax depending on where you live.
Federal income tax will depend not only on what your net is as a contractor, but also on your marital status, other family income if any, the age and student status of your daughter, and what kind of school you are in and what year you're in. Your federal income tax could be as much as $4376 or could be far less depending on the answers to the above questions.
2007-12-05 05:50:16 · answer #1 · answered by Judy 7 · 2⤊ 0⤋