I am currently working as a full-time employee and take 2 deductions on a salary of about 65k. I recently took on a few freelance jobs that will give me an additional 7-10k income, which are paid at a flat fee w/o taxes taken out. I'm worried because I hear that freelancers end up owing thousands in April because nothing is taken out initially (compared to a full-time job). What can I expect next tax season?
United States - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
You're probably in a 15% bracket if you're married, 25% if you're single. Figure that much on the freelance income, plus 15% for self-employment tax, so 30% or 40% will go to taxes, plus any state taxes you might owe. You should make quarterly estimated payments, or have a LOT extra deducted from your pay at your regular job.
2 :
I would lower my exemptions to 0 or 1 to make up for the other income. It sounds like self employment (if no social security or medicare is withheld) which means that in addition to income tax you will owe 15.3% self employment tax on that 7-10k when you file next year
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