Question

Tax estimate for self-employed

Forum|Forum|4 years ago
October 27, 2021
1 reply
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I am 1099 contractor that will need to file Sch C self-employment for 2021. All I receive is the gross payment via direct deposit on a weekly basis. How much should I be deducting each week % from payment for taxes?

Thank you!

D

drc845443

It depends on your overall tax situation. You can calculate your overall estimated tax liability in TurboTax using the Estimated Taxes calculator.

You can find the calculator when you sign into your 2020 tax return in TurboTax as follows (you may need to click on "Add a state" in order to re-open your 2020 tax return):

Go to "Federal Taxes"",
Select "Other Tax Situations"
Select "Other Tax Forms"
Select " Form W4 and Estimated Taxes"
Then answer "No" on the W4 screen and proceed to work on your Estimated taxes

Based on your estimated taxes for the year, you can then calculate the % of withholding that you need for your 2021 taxes, or just pay the estimated taxes based on the calculation.

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