I just started a job where I am 1099. How much do I take out for taxes? I live in Lakewood, Ohio?

Question

I am a salesperson. I make $14.25 base pay (each appointment) and 10% commission

Answer 1

It will totally depend on how much you make per year and if you will be put into the 10% tax bracket, the 35% tax bracket or one in between.  Basically, you will have to set aside 25%-50% of your income.

You will need to make quarterly tax estimates.  You will need to include 15.3% self-employment tax on top of your 10%-35% income tax.  You will have to check with the state of Ohio, to see what their income tax rate is and if you have to pay the school tax and a local tax.

You should go to the IRS website: www.irs. gov and look at the following publications.  The estimated tax one will tell you how much you need to pay the federal government each quarter.  

The instructions for Schedule C on the 1040 form

Publication 505 Tax Withholding and Estimate Tax

Publication 583 Starting a Business and Keeping Records

Publication 587 Business Use of your Home

Answer 2

check city hall down there a friend of mine lives in lakewood.

Answer 3

You'll pay around 14% for self employment tax for social security and medicare, plus federal and state income tax - the income tax amount will depend on your total earnings for the year, and you'll have to estimate that.

Answer 4

How you will treat the 1099-Misc income, read: http://taxipay.blogspot.com/2008/03/w2-o...

Answer 5

about 16%. covers state, federal, fica and medicare.

Answer 6

what are you doing, working for Kirby?

Answer 7

The first thing you should know is that a 1099-misc is for "trade or business" reporting only. Contrary to popular belief, this only applies if you are

A) involved in the functions of a public office, either by holding a public office yourself or being paid by someone who does,

or

B) A resident of Guam, DC, the Virgin Islands, etc.; not one of the 50 states. The definition of "United States" in the tax code is very limited.

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