Home Improvement Contractor - Licensed Contractors - What percentage will I get taxed as an independent contractor at the end of the year?

What percentage will I get taxed as an independent contractor at the end of the year?

I'll make between $12,000 and $13,000 a year from a second job as an independent contractor. They're not taking any taxes out of my check so I'm trying to figure out how much money I should set aside for tax time. Any accountants/tax experts know?

Public Comments

Not an easy question to answer, because it depends on your total income, deductions and so forth. You should be aware that as an idependent contractor your income is subject to (about) 15 percent tax for social security as well as the regular income tax, although you do get to deduct some of that on your 1040 (I told you it was a little complicated). But in answer to your question, I would put aside about 25 percent. And, again depending on circumstances, it might be a requirement that you pay estimated tax payments throughout the year. I think you should consult a tax professional who could look at the specfics of your particular circumstance and give you solid professional advice. Whatever you pay him, can be deducted as a business expense. Re: the answer directly below, I don't know where that person came up with 23,000. What is unknown is how much you make from your primary job, this added to what you net from your independent contractor position is your total income.
Hi, It is fairly easy to estimate. Look at the tax table, and then see what it says. For a person paying tax on 23,000 and single is 3,053 in tax.( Single) Married is 2,651. Go up 13,000 to paying tax on earnings of 36,000 and you get 5,350 for single and 4,601 for married filed jointly. There is also social security tax of 12.5% (you pay both half's of this tax) and medicare tax. So if you set aside about $2,300 for federal tax, and another $1,400 for social security tax, and you should have plenty. See why I hate to work overtime? IT just seems like the extra $5,000 that you bring home is only going to be about $2,500 by the time the Government takes it's share.