Federal Income Tax questions

[Jen_in_NH]

I'm hoping among all the DISsers out there, there's a few who can help me with this.

I'm working PT this summer for a job where they are paying me as a subcontractor. So, they won't be taking taxes and such out of my checks. For a rough guess, how much do I need to set aside for FICA, Social Security, and taxes? Does anyone know of a website where I can enter in how much I anticipate I'll make this year, and get a rough estimate of what I'll be paying in taxes?

I know I need to talk to an accountant, and I should be doing that next week (when my uncle gets back from vacation)

Thanks for the help!
Jen

 

[sbell111]

The internet is ugly with these online calculators. Just google up online tax calculator. Alternatively, you could just toss half of what you make in the bank.

 

[Golf4food]

I have a second job that pays as a contractor (church related). Taxes won't be half and if you wait until the end of the year to pay the taxes owed will be netted against any refund on your other income - though technically if you are paid as a contractor you are suppose to make estimated quarterly tax payments. You will be charged full SS and Medi (whereas a full-time employer picks up half of those charges) and any applicable income tax above that. At minimum I would put away 20%.

 

[clutter]

Social Security and Medicaid is 15.4%. Fed tax would be your net proceeds times your highest tax rate. Depending on how much it is, you may need to make quarterly deposits, or raise your husband's withholdings to cover the amount. By net proceeds, you can deduct any expenses associated with this contract, such as mileage.

 

[RachelEllen]

I received 1099 income for several years, and I'd suggest putting away half of it for taxes. I used to put away 40% and always ended up having to pay a little extra each quarter. As someone else mentioned, you do need to be making quarterly payments to avoid interest and penalities. The alternative is to adjust withholding for other income.

If your the type who does your own taxes at the end of the year, I'd suggest just finding those online calculators. You can even pay the IRS online with a credit card (for a fee) or just mail in the payments.

I would be conservative in the estimations. I found the trouble at tax came from the fact that over half my income was 1099. So even though I took zero deductions, the W-2 income was withheld at a lower tax bracket. You may not have the same issue,