I am an independent contractor. How much money should I put aside for taxes ( will fashion approx. 12k)?
Answers:
don't know what state you are surrounded by, so can't relate you state excise. What I can communicate you is that you will hold to take-home pay 15.3% of 92.35% of the $12k for self-employment charge, which would be $1,696. Also, you will own to take-home pay regular income excise on that, which if you cart standard conjecture of $5,350 and personal exemption of $3,400 would give notice you next to taxable income of $3,250, which would be a tax of $325. But you should also enjoy earn income credit possibly come into play. I would set aside approximately $2,000 for federal rates.
Well, it depends on.is that $12,000 your revenue or profit? You lone money tariff on the profit portion because you will (or should) own save receipts for costs to write bad against your revenue.
But, common rule of thumb, set aside 1/3rd of your expected profit to recompense for your taxes (income, self-employment, etc.)
It depends on whether you enjoy any deductible business expenses for earn that money. And also depends on your connubial and file status, whether you own any dependents, and several other things that you don't mention.
If you are single, no dependents, consequently around $2000 for federal income toll and self-employment due - this go to the IRS, and most of it is self-employment toll (social wellbeing and medicare).
Depending on where on earth you live, in that might also be state and local taxes.