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October 27, 2021
Question

Contract 1099

  • October 27, 2021
  • 1 reply
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I am beginning a contract job next month and want to know how much money to set aside each month for taxes?

    1 reply

    October 27, 2021

    Hi Jacobmx,

     

    As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.  Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income

    https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

     

    Estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.).  Use Form 1040-ES to figure and pay your estimated tax

     

    https://www.irs.gov/forms-pubs/about-form-1040-es

     

    Hope this helps,

     

    Ron G

     

     

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