If you make $30.000 to $35.000 as as freelancer, what % should be stock away for federal and NY state taxes?
Answers:
If you will owe as much as $1,000. in federal income tax including your self employment tax of 15.3%, you will need to file form 1040ES and pay quarterly tax estimates to avoid penalty and interest. (link to form provided)
don't just "stock it away"
Me thinks NY wants you to make estimates if you will owe as much as $300. , but not sure on that.
(link for NY forms)
I do accounting--it depends on what your expenses are-
you only pay taxes on your net profit> Gross income less
expenses. You file a schedule C--you can deduct your
auto if used for business-gas, oil, repairs, insurance, self employed health ins, supplies, advertising, meals and entertainment, etc--get yourself a good accountant- or
buy peach tree or another accounting software. They are a big help and a tax time you can import the info into your income tax return-if you are using turbo tax
It depends on how many associated deductible expenses you have for earning that money - you'd only pay taxes on the net.
And of course, your income tax depends on your filing status, dependents, and other items, so that's not possible to answer with the info you give.
If you're single and don't have much of any deductions for your freelance income, you would probably be safe figuring around a third between federal and state income taxes and self-employment tax - that should give you some cushion.
You'll need to make quarterly payments both to federal and state.
If this is a side job and you have another job, then 1/3 might not cover your taxes.
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