1099 Contract - How much do you save for taxes?

thedudeabidesthedudeabides Member Posts: 89 ■■■□□□□□□□
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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Comments

  • shochanshochan Member Posts: 921 ■■■■■■□□□□
    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.


    "It's not good when it's done, it's done when it's good" ~ Danny Carey
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  • SteveLavoieSteveLavoie Member Posts: 784 ■■■■■■■□□□
    edited January 2019
    In Canada, they say that we work until June for taxes.. then July to December for ourselves :)
  • scaredoftestsscaredoftests Security +, ITIL Foundation, MPT, EPO, ACAS, HTL behind youMod Posts: 2,752 Mod
    For my husband, he stops paying taxes in August and the rest is 'ours', but it is really for our bills...
    Never let your fear decide your fate....
  • EANxEANx Member Posts: 1,078 ■■■■■■■■□□
    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.
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