Going to get my first 1099 this year - have no clue how much to put back for taxes

[Rosie296]

Does anyone know where I could find a calculator or something that will tell me how much taxes I will have to pay on some extra money I am getting from my employer as as "side job"? It's only about $4,500 but I want to make sure I will be ok come tax time.

 

Is it a certain percentage?

[Seabee]

For a ballpark:

 

Start with your net SE income.

 

SE tax will be net x 13.3% (unless your combined wages, tips, and net earnings are over $106,800)

 

Income tax will be net x your marginal tax rate

 

Don't forget your state as well.

 

With only two months left you should be able to come up with fairly accurate income figures for the full year, from which you can just complete a dummy return.

[ArchonInitiative]

Remember your expenses.

[bullthistle]

If you are still frustrated Turbo Tax, Deluxe 1040, will come out before the end of the year so if you know your earnings and deductions you can get an idea so you have the time to save the money.

[Jay Bee]

General rule is 25%

 

You'll be safe with that amount

[Cinder]

General rule is 25%

 

You'll be safe with that amount

 

25% is not a general rule.

 

You have your regular FICA Contribution + Your Employer Contribution (since you are the employer) - Generally ~15% (a bit less). Then you have your actual Federal Income Tax; in my case that's 33% (at least this year, but I can't complain about it being a good year). Then you have your State Income Tax, if applicable, in my case it ends up being around 6%. That puts me at a bit over 50% Self-Employment tax rates. Granted, after deductions are worked out and such, it ends up being around 32% total, but still, 25% is not "safe" unless you know what you're doing.

[TroyP]

General rule is 25%

 

You'll be safe with that amount

 

25% is not a general rule.

 

You have your regular FICA Contribution + Your Employer Contribution (since you are the employer) - Generally ~15% (a bit less). Then you have your actual Federal Income Tax; in my case that's 33% (at least this year, but I can't complain about it being a good year). Then you have your State Income Tax, if applicable, in my case it ends up being around 6%. That puts me at a bit over 50% Self-Employment tax rates. Granted, after deductions are worked out and such, it ends up being around 32% total, but still, 25% is not "safe" unless you know what you're doing.

 

Indeed. I pay about 38% on my self-employment income.

 

As a general rule, I like to estimate like so:

 

Marginal Federal Income Tax Rate

+SE Tax Rate

+Marginal State Tax Rate

=Tax Rate

 

Multiply the combined rate times my expected NET income (income after deductions) and it gives me a pretty good idea.

[LogicalNoMore]

General rule is 25%

 

You'll be safe with that amount

 

Correct JayBee.

Hope the OP can give feedback then if that saved them from paying in. My accountant has RARELY seen someone who has had an additional 25% pulled back from the 4500$ have to pay in if all other deductions were previously rendered thru the "EMPLOYER" for various tax's/benefits. There are always other variables that can create a Pay in for tax's but given the exclusive example of 4500$....I'd say 25% is indeed a practical summation...

[Legaldiva]

I work part time for a company that pays me as a 1099. I always budget 30% and it has been very good so far. Ex..if I get a check for $800/month, I calculate 30% from that and put that in a special savings account. At the end of the year, whatever amount is in that account will go directly to the IRS..so for example in 2009, if I netted $22K, I made sure at least $6,600 was in that account for taxes.

 

 

[jolla]

I assume I'll pay about a third of it in taxes.

[saladdin69]

I work part time for a company that pays me as a 1099. I always budget 30% and it has been very good so far. Ex..if I get a check for $800/month, I calculate 30% from that and put that in a special savings account. At the end of the year, whatever amount is in that account will go directly to the IRS..so for example in 2009, if I netted $22K, I made sure at least $6,600 was in that account for taxes.

 

Ditto.

[cputrwz]

How much money can you make in a year via 1099 and not have to report it? I made 1100 dollars this year via 1099 (and that will be it). I've never done anything with 1099 before and am kinda clueless.

[Seabee]

How much money can you make in a year via 1099 and not have to report it? I made 1100 dollars this year via 1099 (and that will be it). I've never done anything with 1099 before and am kinda clueless.

 

If it's under 50 cents you don't have to report it.

[groze]

How much money can you make in a year via 1099 and not have to report it? I made 1100 dollars this year via 1099 (and that will be it). I've never done anything with 1099 before and am kinda clueless.

 

If it's under 50 cents you don't have to report it.

 

From what I read online, I think it is $600 or $650 for Self Employment for Federal, the IRS.gov website can tell if you need to file a Federal return. Your State should have a website that tells if you need to file a state return. I read some people have filed a State return but didn't need to file a Federal Return. I read the reverse as well.