How much should I save for taxes - 1099 Taxes - Self Employed
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- Опубліковано 9 сер 2022
- How much should I save for taxes if I'm a self-employed business owner?
It is so important to know how much to save for taxes because you do not want to be blindsided by Uncle Sam.
As a sole proprietor, LLC, small business, S -Corp, or 1099 independent contractor YOU are responsible for paying your taxes.
Unlike employees, whose taxes are withheld from their paychecks and paid on their behalf by their employer.
Press Play to learn how to save for taxes so you are always prepared when Uncle Sam comes knocking!
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**DISCLAIMER: This video is meant for educational purposes only. This is not to be relied on or considered financial or legal advice. - Розваги
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Great video, thanks!
this video is gold for any new business owners! Thankyou for the kind advice. 1000 percent all true.
Thank you so much!! I am so happy that you enjoyed the video!
You just earned a new subscriber! 😊
I’m so happy you enjoyed the video:)
Amazing advice thank you for this! I’m a 1099 contractor , and I was wondering how important is having CPA if you understand how it works? Do you feel every should have a CPA regardless of income revenue?
Hey there! Great question:) I do not believe that everyone needs a CPA. However, I do believe that if you are self employed you should NOT do your own taxes so I would find a tax preparer and strategist that you really connect with.
hello! i have a couple questions.
1) i work multiple gigs, for payments on each of those gigs, should they all be separated when saved? or can i put the 30% in one bank account together?
2) do i have to have an llc to take off certain deductions? one "business" i have is myself, i an a dance teacher/choreographer and heard that you have to have an llc to for deductions or at least certain ones. another example i work as a gogo dancer, and wanted to say paying like things for costumes, makeup, etc., but heard it wouldnt work since the 1099 for this is coming from a business
3)how do you claim money that is paid through zelle or sent straight to my bank account? i know you have to claim money you earn in checks, not sure how online banking would work
4) for the 30% saving, do you take a certain amount from each paycheck/payment? or do you add up all income in one month and then take 30% from that?
thank you so much!!!
Im so glad you enjoyed the video! Here are your answers:) 1. You can put it all together! 2. As long as you are 1099 and NOT an employee you can deduct your business expenses. 3. You have to claim EVERY SINGLE PENNY that you collect. Then you minus every single penny of qualified business expenses and then you are left with your taxable income. Example - $5,000 is paid to you, you spend $1,000 on business expenses, your taxable income is $4,000. 4. You take your total income - minus business expenses = PROFIT and then you set aside taxes for your profit. I also have a brand new updated tax calculator and money tracker that will really help you with this! Let me know if you are interested:)
Hi, I have a question my wife is planning to go into a 1099 position that we are assuming will be 75,000 and I am 32,000 year and we plan to do our taxes jointly. We also have a son that tax bracket that is needed to be used to figure out how much is owed to the government do we need to use the tax bracket of our combined income or just hers because I have an employer who takes out my taxes?
Hi, thanks so much for watching my video, I am happy you enjoyed it. To answer your question, you will want to use your combined income to find your tax bracket to estimate your total tax that will be owed. Keep in mind you can use the standard deduction for married filing jointly, which is $27,700 for 2023, to offset your combined income first. Then use that number to find your tax bracket/percentage. After using your tax bracket percentage to estimate your total tax that will be owed you can then offset that number by the total federal taxes that are being withheld from your paycheck plus another $2,000 for the child tax credit if your son is 16 years or younger.
Thank you for the information it is helped us sit down and kind of plan what we need to do with this job I do wanna ask does that cover your Medicare and Medicaid deductions that usually come out of your paycheck or did that just cover federal and state income tax?
So i'm a 1099, and I am in the 8% state tax, and 22% income tax bracket which is exactly 30. However, what about the self-employment tax which is arond 15%? Does that make it 45%?
Great question! You will have to pay SE taxes but it will not be 15% and a large portion of what you pay is deductible :)
@@DenaiWolfe thank you :). Makes sense. I’ve been saving 30% so hope it’s okay on my 67,000 k a year
Hello I have a question do you still reply ?
Yes:)
30% each month !! ?? 😮😢
Hey there! To get your accurate percentage check out the income tax brackets on the irs website and you states division of revenue website. Or you can ask your tax preparer:)