Questions about taxes?

[afjess1989]

Man friend works under a 1099 and I was wondering is there a website or some type of tax Calculator to calculate how much taxes should be taken out his paycheck every week? Just so we know to put that amount in a savings account for next year when it's time to do taxes.

 

[MarieB]

Man friend works under a 1099 and I was wondering is there a website or some type of tax Calculator to calculate how much taxes should be taken out his paycheck every week? Just so we know to put that amount in a savings account for next year when it's time to do taxes.

He has to make quarterly estimated tax deposits.

Go to IRS and search self employment tax to help determine the rate, and don't forget about the federal income tax portion

Have him sign up for an EFTPS account so he can make the tax deposits electronically. You can even set them up in advance

 

[MarieB]

Estimated Taxes


Self-Employed Individuals Tax Center

 

[afjess1989]

He has to make quarterly estimated tax deposits.

Go to IRS and search self employment tax to help determine the rate, and don't forget about the federal income tax portion

Have him sign up for an EFTPS account so he can make the tax deposits electronically. You can even set them up in advance

He didn't do that last year. We just paid it all when he filed taxes cuz he had a 1099-mics form

 

[RPMDAD]

Estimated Taxes


Self-Employed Individuals Tax Center

Wow, i just read the estimated tax one, it sure is amazing how much our federal govt. likes to levy, penalties on its citizens.

 

[tommyjo]

Man friend works under a 1099 and I was wondering is there a website or some type of tax Calculator to calculate how much taxes should be taken out his paycheck every week? Just so we know to put that amount in a savings account for next year when it's time to do taxes.

Go see a professional tax preparer (despite what others may tell you the computer/internet/chat rooms can not answer all questions or provide all services for free)...they can help you and you have a much better chance of getting closer to what you actually owe.

Don't forget you have to pay MD estimates as well.

 

[tommyjo]

Wow, i just read the estimated tax one, it sure is amazing how much our federal govt. likes to levy, penalties on its citizens.

And why shouldn't those who pay late or fail to pay be penalized??

Christ...it's one of your basic responsibilities as a citizen to help pay for the management of the country.

Your credit card penalizes you for paying late, so does your mortgage company and every other business you may owe money to...why should payments to the govt be different?

 

[MarieB]

He didn't do that last year. We just paid it all when he filed taxes cuz he had a 1099-mics form

Read the site, and talk to a professional if you don't understand it. There are times the first year of contracting that you might be ok with having done that, but it depends upon how much you've made via 1099, what you expect to owe, what your taxes were the prvious year, when you made what, etc etc

You will pay a penalty and interest to the state and feds if you don't do it properly.

More here


How To Calculate and Make Estimated Tax Payments | SBA.gov


Maryland is also a pay as you go state