Wife just started new job and will be 1099'ed. Where's the best place to get info on figuring out how much we need to set aside from her paychecks for taxes? And filing those quarterly things.

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Posted by EOT

70769

Member since Dec 2006

1432 posts

Posted on 5/26/09 at 4:06 pm to TheLittleAristotle

40% is what I used to set aside and pay my estimated quarterly taxes with.

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Posted by JmanfromTigerland

Baton Rouge

Member since May 2009

338 posts

Posted on 5/26/09 at 4:22 pm to EOT

quote:
40%

This may be a bit high (depending on your income), but at least you won't owe at the end of the year..see IRS.gov for the percentages...you'll need to pay federal, ss, medicare, and state taxes...federal and state taxes are based on your income...ss and med is like 7.62% or something

This post was edited on 5/26/09 at 4:23 pm

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Posted by LSUGUMBO

Shreveport, LA

Member since Sep 2005

8526 posts

Posted on 5/26/09 at 5:11 pm to JmanfromTigerland

I would contact a CPA. You'll probably need one at the end of the year anyway, and they will help you get everything set up.

My wife and I (both self employed) usually save 35-40%, but only send about 1/2 to the gov't before April 15. We usually have money left over after taxes to put in the HSA for the following year.

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Posted by TigerDeacon

West Monroe, LA

Member since Sep 2003

29307 posts

Posted on 5/26/09 at 6:04 pm to JmanfromTigerland

quote:
ss and med is like 7.62% or something

x2

If self-employed, you have to pay both sides of SS and Med, so 7.65% x 2.

So, that 15.3% for SS&Med, plus your fed tax rate, plus state taxes if applicable will get you to 40% real quick.

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