Question #24431

How much should a 1099 worker making $1,500 a week set aside for taxes?

  • STEVEN F

If you make that much, you are either an employee, that should have taxes withheld by your employer, or a self employed business OWNER that should have already hired a CPA to set up proper accounting records for your business.

  • MadMan

Set aside about 30%.

  • ?

Ask an accountant. They might charge you a small fee but it will be abount the same each year

  • StephenWeinstein

About $600 a week

  • Pascal the Gambler

At least 35%. That's like 78K a year, self employment tax is about 16%, plus federal income tax another 20% ish, then any state taxes. They should be making quarterly payments as well.

  • tro

your self employment tax is $211.91 on that amount of money

  • Max Hoopla

When someone asks a clueless question like this I always ask "Are you really an independent contractor or are you an employee who is being misclassified by your employer?" If you have to follow orders from a supervisor, show up at specific times at the employers location, you are an employee and shouldn't have to ask this question. Download IRS Form SS-8 and the instructions and get an idea what your real status is.

  • Coffee Drinker

I used Turbo Tax online calculator with the following assumptions:

  • ?

About 30%

  • David

Is that $1500 based upon net profit or gross? Either way, a 1099 worker is responsible for paying self-employment taxes of 15.3%, plus federal income tax based upon marital status and other deductions on net income. He is also required to make quarterly tax deposits. I'm going to suggest matching that 15.3% self employment with another 15.3% for federal income tax. Plus you need to set aside for state income taxes an amount based on what your state rate is.