Question

How much should I set aside for taxes as an independent contractor?

Forum|Forum|6 years ago
November 27, 2019
1 reply
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I am an independent contractor for an online company. I live in Georgia. I make about $1,000/month. I have been setting aside 33% of my income. Is this too much or too little?

B

Bsch4477

Your self employment tax will be about 15% of your net self employment income. Any other tax will be on your total taxable income and would be taxed according to your tax bracket. If your only income is $12,000 a year, your standard deduction will zero that out so you would only owe the self employment tax.