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    ccouch9981's Avatar
    ccouch9981 Posts: 6, Reputation: 1
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    #1

    Apr 25, 2012, 11:28 AM
    How much should I hold out for taxes if I will get a 1099 in Indiana
    I am a contracted employee and will receive a 1099 for services provided in Indiana. How much should I save back for taxes?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 25, 2012, 11:41 AM
    That REALLY depends on what your total income would be, but I would advice you save AT LEAST 25% of each paycheck for taxes.

    Also, quarterly estimated taxes should be paid to the IRS using Form 1040-ES.
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    ccouch9981 Posts: 6, Reputation: 1
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    #3

    Apr 25, 2012, 11:49 AM
    Total on 1099 should be 4,800 for the year 2012.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Apr 25, 2012, 12:11 PM
    If that is your ONLY income, then have about $750 available at the end of the year to pay the 15.3% self-employment tax.

    You will have NO income tax liability because the combination of your personal exemption ($3,700) and your standard deduction ($5,800) exceeds the $4,800 earned by $4,700.
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    ccouch9981 Posts: 6, Reputation: 1
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    #5

    Apr 25, 2012, 12:24 PM
    No - this is a side job. I will have around $45,000, plus my husband's income of $38,000 for a total of $83,000 plus the $4,800 from the side job, which will equal around 87,800.
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    ccouch9981 Posts: 6, Reputation: 1
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    #6

    Apr 25, 2012, 12:25 PM
    Just want to make sure I shouldn't be filing something now... have never gotten a 1099 before. Thanks for all of your help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

    Apr 25, 2012, 12:27 PM
    In that case, make NO estimated tax payments.

    Just decrease your allowances on your job by ONE to withhold enough taxes to cover the extra tax that the $4,800 will generate on your return.
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    ccouch9981 Posts: 6, Reputation: 1
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    #8

    Apr 25, 2012, 12:30 PM
    Thank you SO much! Greatly appreciated.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #9

    Apr 25, 2012, 12:31 PM
    Glad to help!
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    ccouch9981 Posts: 6, Reputation: 1
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    #10

    Apr 25, 2012, 12:31 PM
    I already have 0 allowances, so I should be okay I think.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #11

    Apr 25, 2012, 12:36 PM
    Yes, probably, but that depends on how many allowances your spouse has. This assumes you will file jointly.
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