OK. I typed in the wrong $ amount for my question. If I make $1325.00?
Answers:
You can't just set money aside for April 15th. You need to make quarterly estimated payments. Use Form 1040-ES for Federal. Get a copy from the IRS website and use the worksheets to estimate your income and taxes and calculate the payments you need to make. If you don't make the quarterly payments you may be facing penalties for underpayment of taxes when you file.
SC has their own version of that, get it from the state tax department website.
I would put aside AT LEAST 40 percent.
You still have to pay social security taxes as well.
The basic rule of thumb is 20% for non married people...You should have more than enough set aside for taxes.
I've always been told to set one third of my income aside. In this case, that would be 442 a month.
The sovereign state of South Carolina is a set of ruling
original 13 states program. There are two counsels to
look at for some tax relief. One is if you contribute to your
church. This amount can be deducted, and also a charity
that is located in the welfare system, take off 4500. This
now leaves you at 92--. In general though any tax person
should belong to the amnesty, veterans, social securities
and bank financial tax audits to keep all your return and to
point to the feature that you manage your own costs. The
government has over 6 ways to generate money, and as
an individual their priority is for you to find the beneficial
leads. Catholic investment counselors can be helpful.
I would guess about 1,000.00 for your income level.
Be cautious not be a tax payer, it is unknown who has the
collection, bargaining, or security duties.
http://www.chamberofcommerce.com...
well consider that se tax is 15.3% and also figure the income tax on 1325*12 assuming it was all year
you are looking at 15,900 so the income tax would be about 2000, that being said I would put about 30-40% away
If you are disciplined I would put it in a savings account with a high interest rate and let it accumulate all year and come tax season you will have your taxes and some extra cash.
If not so disciplined then you need to make estimated tax payment to keep from owing a large amount at the end of the year!
Good luck either way
Figure.15.3% for self-employment taxes, and another 8% or so for federal income taxes. Maybe another 6%, probably less, for SC. So close to 30%.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
More Related Questions and Answers...