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    1099Help's Avatar
    1099Help Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 12, 2007, 02:53 PM
    1099 Tax specifics
    Hi!
    I am about to accept job on 1099. Expected early income would be about $90,000.00
    I would like to know what percentage of tax will I pay in each categary.
    I am a resident of Illinois state.

    Example: State, Federal, Medicare, Social Security, etc.

    Please let me know asap.
    Thanks,
    Mobea's Avatar
    Mobea Posts: 220, Reputation: 15
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    #2

    Apr 12, 2007, 09:16 PM
    That's a tough one to answer because it is unknown what your net income will be after your expenses are deducted for your job. A good rule of thumb is to deposit quarterly about 35% for taxes. This would give a broad coverage of 20% for federal income tax and 15% self-employment taxes. But again, it will depend on what your net income will be. You may end up paying a little more at the end of the year or your may end up with a refund, but this should cover the bulk of your tax liablity.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Apr 19, 2007, 03:14 PM
    35% s a GOOD rule of thumb, but I would withhold 40%, because you are Squarely in the 25% marginal tax bracket.
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