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    munkyman12's Avatar
    munkyman12 Posts: 1, Reputation: 1
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    #1

    Jan 26, 2007, 10:16 AM
    Percentage that Bonus is taxed for Independent Contractor
    I work as an independent contractor and was recently given a bonus check for 7500. I was told that I would need to set aside 40% for taxes. Is this right? Is there some sort of scale used for this or is it always 40% no matter how much bonus you receive?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jan 26, 2007, 10:31 AM
    Yes, 40% is about right, depending on your overall income and the state you work and live in.

    Most people are in the 15% marginal income tax bracket, and the self-employment tax is 15.3%, so that's 30.3% right there. Factor in the state income tax and you are right at 40%.
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