1099 Contract - How much do you save for taxes?
thedudeabides
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My online research has seemed to suggest at least 17% should be put away for taxes. For those with experience as full-time 1099 contractors, does that number seem reasonable? I've also read that many expenses can be written off, thus lowering one's tax liability. To what degree can that help? Thanks.
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shochan
Member Posts: 1,014 ■■■■■■■■□□
It really depends on how much you make & which tax bracket your in. I would suggest putting back 1 whole paycheck to cover taxes, maybe 2 checks.CompTIA A+, Network+, i-Net+, MCP 70-210, CNA v5, Server+, Security+, Cloud+, CySA+, ISC² CC, ISC² SSCP -
SteveLavoie
Member Posts: 1,133 ■■■■■■■■■□
In Canada, they say that we work until June for taxes.. then July to December for ourselves
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scaredoftests
Mod Posts: 2,780 Mod
For my husband, he stops paying taxes in August and the rest is 'ours', but it is really for our bills...
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EANx
Member Posts: 1,077 ■■■■■■■■□□
1099 contractors are responsible for bot the employee portion as well as the employer portion of any required taxes. The ones that come to mind are 6.2% for social security (12.4% total) and 1.45% for medicare (2.9% total). SS has a max income cutoff, after which you don't have to pay anymore. The max for 2018 was $128,400 but it changes from year to year. There is no max for medicare insurance tax.