Hello :)
Every year husband and I enjoy a nice big tax refund (thanks to 2 children, EIC and moderate-level income.) Husband has gleefully quit the 9-5 job and is pursuing independent HVAC work from a licensed contractor friend. Said-contractor does not withhold taxes, and will issue a 1099.

How do we figure out how much 'tax' to 'withhold' from ourselves each paycheck (and squirrel away in a checking account somewhere) so that come next year, we can use that $ to pay the tax due?

Is this how 1099ers do it? We don't want to have to shell out a big chunk-o-money next April. Thanks in advance for any help/shared experiences.

You can get witholding tables from the IRS which will give you an idea of how much to sock away. You may have to pay quarterly estimated taxes as well.

Thanks so much Scott - I'll go investigate at the IRS site. :)

Also depending on how much he is earning, he may be required to file quarterly estimates. If not, if he owes over a certain level there are additional penalties.

Also besides the income tax for this, there will be social security taxes, normally when you work you pay a percent and the company pays a percent, but as self imployed you will be paying the entire amount also.

I found in the past about 40 percent of my money went to taxes or one nature or another.

I did mention about quarterly estimates. But that's a good point as social security taxes.

All answers are good! I have nothing to add.