How much do i set aside for taxes

how much do i set aside for taxes


Best Answer: My question for you is:

If you don't have withholding from your paycheck, what kind of "job" do you have? No one makes 90K under the table, so I suspect you're self-employed.

If you are, you have to pay self-employment taxes above and beyond your income tax (15.3% of net business income). Along with this you will get about half of that in an income adjustment to reduce your taxable income.

adjustment for self-employment tax

student loan interest

self-employed health insurance

any other adjustments (bottom front of 1040)

Minus standard deduction for a married couple ($10,300)

Minus exemptions for you, hubby, and other dependants ($3,300 each)

Result is taxable income

Taxable income * 25%

Result is how much you owe

How much you owe

minus any credit you qualify for on the reverse top of 1040

minus anything you paid in during the year

plus self employment tax

Result is how much you have to pay

All you have to do is make sure that the amount you have to pay, plus perhaps a small amount for error, is deposited with your bank for taxes by January 15.

Also, I made an assumption that you'll be in the 25% tax bracket. If your taxable income will be between $74,200 and $154,800, you'll be in the 28% bracket. (Your tax will actually be a little lower than this because I didn't take the time to figure in the progressive lower brackets.)


I find it hard to believe that you can't deduct your mortgage interest and property taxes.

If you're paying for a loan on your home, you get the deduction. Who told you that you can't have it? The only way you can really lose something like this is in a divorce settlement, and I've never seen a person get a deduction for something they don't pay for.


Category: Taxes

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