How much tax for self employed
Best Answer: $33,000.00 - business expenses (schedule C) = net earnings or loss
net earnings or loss - standard deductions (or itemized) - personal exemption = taxable income
then go to http://www.irs.gov and look at the tax chart for a single filer at whatever your taxable income is and that is how much you owe.
that was the simplified edition.
if you go ahead and print the 1040, schedule C and assorted other forms (such as schedule SE and the form 8829) that you will need you can quickly and easily see what you will owe, it breaks it all down for you, just go line by line (just follow the instructions for the 1040 and schedule C).
hope you kept receipts you may never need them but it is best to be prepared.
as an independent contractor (1099) you get to write off a lot of expenses that as an employee (W-2) you can't. you will not (or should not) end up paying tax on anything even close to that $33,000.00.
IF the $33,000.00 is your net earnings (no expenses) then your taxable income will be roughly
$20,900.00 which is $33,000 - $2336 (credit for self employment tax) -
$5950 (standard deduction) - $3800 (standard exemption).
the tax on that $20,900 is $2706 + self employment tax of $4062 =$6768 total tax bill that you will owe.
that is an estimate and assumes you have no business deductions which as an independent contractor that is extremely hard to imagine.
my regular business expenses include mileage, office supplies, home office expense, cell phone, portion of utilities for home office, advertising (business cards), etcetera.
this is where the schedule C and instructions come in handy.
and as long as you file on time without an extension and pay your entire tax bill when you file you will not be penalized.
the only time you must file quarterly is when you owed more than $1000.00 the previous year.
since this is your first year as self-employed you did not owe anything last year so you were not required to file quarterly estimates this year. now from this point forward you must pay the quarterly estimates or you will be penalized in the future.
this is the form you will use to determine if in the future you have to make the quarterly estimate payments
Source(s): disabled and a self-employed consultant for the last 5 yearsSource: answers.yahoo.com