What will my income tax return be?

Question

I only have a summer job. I am making $20/hr full time (40 hour weeks) for 12 weeks. This adds up to $9600 pre-tax, which I get in full from my employer (I am a freelancer). What is the percentage or return amount? I Iooked online, but they only have yearly salary rates...

Answer 1

Your tax return will be a piece of paper.  You FILE a tax return.  In your case, you'll have to pay when you file.  Start setting money aside now; you're going to need it shortly.

Since you're self-employed, you'll owe about $1,356 in Self-Employment taxes, plus about $415 in income taxes for a total of $1,771.  You need to make estimated payments of half of that amount on 9/15/2008 and 1/15/2009 using Form 1040-ES to avoid any penalties and interest for underpayment of estimated taxes.  You can skip the 1/15/2009 payment as long as you file and pay the balance due by 1/31/2009.

BTW, you don't file a 1099, the company paying you will and send it to you.  You'll use that and your business records to prepare your tax return.

Answer 2

Go to www.hrblock.com They have a tax estimator  and refund anticipation calculator that you can you that might help. I would save up some to pay a good bit of taxes because you will have what is called "self-employment" taxes and they are usually very high. Hope it helps.

Bethany

Answer 3

Based on the information that you have provided you will be liable for $623 income tax and $1,407 in SE Tax. (SS and Medicare tax).  Now you may be able to reduce that if you have expenses against the $9,600.

Answer 4

You will need to pay income tax on that 9600.  Go to irs.gov and download the appropriate forms.  That money is your salary for the year even though you earned it in 3 months.

Answer 5

You'll owe around $1383 for self employment tax for social security and medicare, plus around $415 for federal income tax.  You should be sending in an estimated payment using form 1040ES - if you don't, you'll be penalized.  So when you file your federal return, you'll owe close to $2000.  Depending on where you live, you will very possibly also owe something to your state and maybe to your city.

When you say "what will my income tax return be" I hope you aren't thinking you'll get a refund.  A refund is giving you back an overpayment - you don't have any payments even, let alone an overpayment.

Answer 6

Your income tax return will probably be a 1040-EZ.