Home Improvement Contractor - Licensed Contractors - I'm an independent contractor. How much should I deduct from my wages for taxes (federal, state, etc)?

I'm an independent contractor. How much should I deduct from my wages for taxes (federal, state, etc)?

I'm currently working as an independent contractor in LA. This is a first for me since I've always been an employee in a company. How much should I deduct from my weekly wages to cover for all the appropriate taxes (federal, state, social security, etc)? I don't want to end up paying a bundle at the end of the year. I've also heard something about self-employment taxes. Any advice? Thanks!

Public Comments

Self Employment taxes are 15.3% of your net earnings. For most first time independent contractors that is a shock at tax time. Now is the time to sit down with a tax professional and determine howmuch you need to pay in estimated taxes and put aside for SE Tax.
Unless your income comes from the sale or distribution of Fire Arms, Tobacco or Alcohol, you do not need to deduct any taxes as according to the US Law, the tax from any other source is of VOLUNTARY COMPLIANCE. Call your local IRS Office and ask them. They will have no choice but to confirm this law. Record their answer on the dictaphone or a tape recorder for your future reference.
Read more about self employed tax filing and estimated tax payment: http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html
As an independent contractor you should make estimated tax payments throughout the year. There are certain dates that these are due. Here's a link to the estimated tax form. http://www.irs.gov/pub/irs-pdf/f1040es.pdf It has a worksheet to help you figure out how much you should owe for the year and it has payment vouchers so you can make the estimated payments. It also has the due dates listed. The next due date is June 16. You should also go to your state website or a local state tax office and find their estimated payment forms.