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How can I figure taxes for an independent contractor in Texas?
This is in Texas so there is no income tax. The independent contracter would earn around $600 every 2 weeks with no taxes taken out. I understand that it is best to file these taxes quarterly, however how would the contractor go about filing them, and how would the contractor know how much they will owe so that they can know how much to set aside each paycheck? The contractor also has another job in which they are considered an employee that pays $225-$250 every 2 weeks, however taxes are taken out of this regularly if this matters at all to the independent contractor job
Public Comments
- Self employment tax on the independent contractor income would be around $2200 for the year, or $550 per quarter. Add another $400 per quarter for for federal income tax and you'll be close, so send the IRS $950 per quarter.
- You are self employed or independent contractor. You must file your tax return if your self employed income is $400 or more. You will report your income and expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Half of SE tax is deductible on line 27 of Form 1040. Read: http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html
