In 2006 (this year) I managed to earn $60000 as a contractor (I work 100% from home doing programming work)

I'm in the state of Texas, so what taxes do I have to file and how many percentage are they? This is my first time being self employed. So far after reading online, ii know I have ot file 15.3% SE Tax, anything else I should worry about?

Thanks in advanced guys

Victoria

Victoria:

The good news is that you will owe ZERO state income tax, because Texas has NO income tax! :)

If you had NO expenses in generating that income, and assuming you are single with no dependents, you would owe $17,667. This includes the self-employment tax and income taxes. This also includes an $800 underwithholding penalty (which probably can be waived since this is your first time filing a Schedule C).

I am sure you had a fair amount of legally deductible expenses that you incurred while generating that $60K in income which can be documented on Schedule C to reduce your tax load. The extent of those expenses is a bit too detailed to go into here.

If you want details, contact me at [email protected] for more information.