I am now working for a company on a short term (3 month) contract in Nevada and they are paying me without deducting taxes. How much should I be planning to put away to cover taxes?
Originally posted 2010-09-08 12:36:38. Republished by Old Post Promoter
Warning: include(/mounted-storage/home111c/sub007/sc63256-EOYS/shorttermflats.org.uk/wp-content/themes/fusion/) [function.include]: failed to open stream: No such device in /mounted-storage/home111c/sub007/sc63256-EOYS/shorttermflats.org.uk/wp-content/plugins/yet-another-related-posts-plugin/magic.php on line 300
Warning: include() [function.include]: Failed opening '/mounted-storage/home111c/sub007/sc63256-EOYS/shorttermflats.org.uk/wp-content/themes/fusion/' for inclusion (include_path='.:/usr/share/php5/') in /mounted-storage/home111c/sub007/sc63256-EOYS/shorttermflats.org.uk/wp-content/plugins/yet-another-related-posts-plugin/magic.php on line 300
Related posts brought to you by Yet Another Related Posts Plugin.
#1 by Jss at September 9th, 2010
You are self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read about self employed (or independent contractor) tax filing and payment of estimated taxes:
#2 by v b at September 10th, 2010
At least 15%, preferably 30%.
#3 by Bob F at September 10th, 2010
30%. But you should be doing more than putting it away. The government doesn’t want to wait until the next year for money you earn this year. So they will penalize you if you don’t pay quarterly. Go to and download form 1040-es. The form and instructions will tell you more.
#4 by HRBlock Shannon C at September 11th, 2010
It will depend on your tax bracket.
For example: If you are in the 10% tax bracket then you need to account for:
10% Federal Income tax,
15.3% Self Employment tax
and whatever percentage is calculated for the state you live in.
Shannon Coley – H&R Block – Senior Tax Advisor 5
** This advice was prepared based on my understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more.