1099???

[buddy]

Surely at my age, I should know the ins and outs of how to file my own taxes… well I don’t! That’s why there are companies out there to do them for me. To me it’s all a hair pulling topic, and well worth paying someone else to figure it out for me.
Anyways I just recently started a new job a month ago as a sub-contractor. I have never held any 1099 job in my life. I have always been W-2. My question is.. Here in Georgia, how much taxes (percent %) of each paycheck should I be putting aside, come tax season and I need to pay those taxes? (Example…. Let’s say I get paid monthly at $5,000.00 a month for a total annual earnings of $60,000.00. Do I only need to pay State and Federal taxes, com tax season? Or will I be paying Medicare, and social security etc as well.
I’ve been told a safe number (percent) to put aside per pay check would be 37%. Is this anywhere close? That seems a bit high, even if I was paying State, federal, Medicare, and SS.
I apologize for me dumbness hahaha… Help is appreciated! If your and sub-contractor in Georgia your info would help!
Also I do pay for all my supplies which comes to, or about $1000.00 per month. Plus the traveling to and from jobs.

Thanks in advance.

[boatmangc]

Most likely you need to file quarterly to keep from getting too deep.
I am not sure about state income taxes.
Keep receipts from everything business related, keep an accurate mileage log.

Get a good CPA. Don't let it scare you.

[fastblackmerc]

You need to contact a good CPA.....

[RubberCtyRauder]

Ditto on above posts, You need an accountant,CPA and yes you need to file quarterly taxes or you will pay penalties, basically for being late

[martyo]

Here are the tax brackets for GA tax:

Tax Bracket Marginal Tax Rate
$0+ $0+ 1.00%
$750+ $1,000+ 2.00%
$2,250+ $3,000+ 3.00%
$3,750+ $5,000+ 4.00%
$5,250+ $7,000+ 5.00%
$7,000+ $10,000+ 6.00%



You should use an accountant - it is worth the investment. Where in GA do you live?

[Ken]

Yes, you will be also be paying social security and medicare taxes (also known as self employment taxes). How much was withheld percentage wise from your w-2 job? Now add an extra 7.35% because you are responsible for the whole amount for social security, whereas your w-2 employer pays the other 7.35%. As mentioned above, keep your receipts, keep good mileage records, and not recreations. Keep a notebook on your visor. And speak with a good tax professional asap for advice before you get in too deep.

And Good Luck with the new job!

[MyBlackBeasts]

Surely at my age, I should know the ins and outs of how to file my own taxes… well I don’t! That’s why there are companies out there to do them for me. To me it’s all a hair pulling topic, and well worth paying someone else to figure it out for me.
Anyways I just recently started a new job a month ago as a sub-contractor. I have never held any 1099 job in my life. I have always been W-2. My question is.. Here in Georgia, how much taxes (percent %) of each paycheck should I be putting aside, come tax season and I need to pay those taxes? (Example…. Let’s say I get paid monthly at $5,000.00 a month for a total annual earnings of $60,000.00. Do I only need to pay State and Federal taxes, com tax season? Or will I be paying Medicare, and social security etc as well.
I’ve been told a safe number (percent) to put aside per pay check would be 37%. Is this anywhere close? That seems a bit high, even if I was paying State, federal, Medicare, and SS.
I apologize for me dumbness hahaha… Help is appreciated! If your and sub-contractor in Georgia your info would help!
Also I do pay for all my supplies which comes to, or about $1000.00 per month. Plus the traveling to and from jobs.

Thanks in advance.

You are required to file quarterly and pay quarterly estimates. Your accountant (get one, you can't do this yourself) can give you an idea of what to put aside till you file 1st quarter.

[Jeffonebuck]

All the above are the way to proceed; I would just add to pay quarterly and not at the end of year and pay above your percentage as this will keep the IRS Red Flags from audits. At the end of year you will tally up and get any overages back for more Mods !

[fastblackmerc]

Wouldn't it be nice if here was a flat 10% tax............ for everybody??

[1 Bad Merc]

Make sure you pay your social security and medicare as we know some people that skipped it and ended up not being qualified for Medicare and SS when they retired.