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    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #1

    Aug 1, 2006, 06:31 AM
    Witholding?
    My daughter just started a paid position with a congressional campaign doing canvassing. She is also a full time student expecting to graduate nest summer.

    The campaign told her, they will be paying her in full for her time and taxes will be her responsibility.

    My question is how much should she put aside to cover her tax liability? So far this year she has not had a job so no income. The likelihood is that income for the year will not exceed $5K.

    Scott<>
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 2, 2006, 07:00 PM
    She is being paid as a contractor, which means she has to pay self-employment tax (15.3%). Add about 10% for income taxes, so she should put aside 25%.
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