Starting job in July that is 1099 instead of W2. What should I be saving?

Highly recommend a CPA. Keep track of all your bills, meal receipts, mileage, any expenses you can relate to your job to write off. If no state income tax than I would think 25% should do it, but do 30% if that makes you feel better.

Also, most importantly, open up a separate savings account and put that 25% straight in there and forget about it. Makes it very easy to ignore that money and not get tempted to use it for something.

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Highly recommend a CPA. Keep track of all your bills, meal receipts, mileage, any expenses you can relate to your job to write off. If no state income tax than I would think 25% should do it, but do 30% if that makes you feel better. Also, most importantly, open up a separate savings account and put that 25% straight in there and forget about it. Makes it very easy to ignore that money and not get tempted to use it for something.

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Awesome. Thanks, Brett

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Depending on your income level, that may need to be closer to 40%

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fack. it's an entry level position (I just graduated) and I won't be making too much to start out. do you have an idea what kind of income would necessitate saving 40%?

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What should I be saving per month for the quarterly tax payments? Is 30% about right? Single, no dependents, etc. I'll in Houston, so no state income tax. I'm just gonna hire a CPA to do all this shite once I get settled in, but I'd still like to have a ballpark percentage going in.

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Your OASDI/Medicare is going to be 15% off the top, so that's your starting point. I might even go 35% depending on your gross. You'll know a lot more after you pay that first quarterly bill.

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I'm just gonna hire a CPA to do all this shite once I get settled in, but I'd still like to have a ballpark percentage going in.

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rom what I've gathered, I definitely need to get an LLC w/ S election down the road,

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This cannot be done soon enough. I see you're starting this situation in July and you want to wait, but you're only asking for trouble down the line to convert your operations. If you "dive in" and wait, I would set a hard deadline for yourself to have it done and ready to convert NLT 1 January.

Half

It sucks, it really does. Just finished our first year on our own and it really makes you mad when you see all the waste, fraud and abuse both state and federal governments produce.. But I digress.

So, I think I mis-read at first, and was responding to just that tittle of "how much to save", not how much just for taxes.

Do you have an idea of how much you will be earning? It would help to better answer the question.

Keep in mind, roughly 15% is gone off the top. Once you elect s Corp status, you can limit this to a certain degree, but you do have to pay yourself a reasonable salary still. So the s Corp status may not benifit you much until you earn a decent amount more than you have to justify paying yourself. There are also limitations to healthcare deductions with an s Corp too. Once you add in federal taxes, unemployment payments (taxes), health care costs, retirement benifits you may be losing, etc you can see where "half" gets pretty close.

All that said, owning your own business and the freedom that comes along with that is very rewarding. Good luck.

Any business expense deduction will save you lots of money. That is key. Will you be driving anywhere besides to the office?

It's 25% up to $52k

Unless you have to drive to the store to get materials, drive to the airport, drive to continuing education, drive to entertain clients, drive to the store to look at new products, drive to the bank, post office, etc, etc

Home office?

You are in IT? You should look at deducting home internet, personal computers, phones, tablets, subscriptions, professional associations dues, watch repair, etc

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20 question contractor quiz, then they need to w2 you instead.

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Many businesses are going to pay big time if this is ever really looked at systematically.

I know tons of "pseudocontractors"; they have to work at particular times and meet company policies, etc.

1099 for a entry level position where you wont be making much money? sounds like you are getting screwed.

scada/automation is a great field to get in, not so sure about the pen side. just remember anything siemens is easily hacked.