I currently have a fulltime W4 job, however I have recently also taken a part time job on the side that pays me about $500 a week through a 1099 form. I'm trying to determine how much I should set a side every week to pay for taxes. From reading online im getting the idea that I should be saving about 25% + 15% self employment tax every week (total 40%?).===============>>On your 1099 income, you need to report it on Sch C and file return aslongas the amount on line 20 / 31 is $400 or exceeds $400 and also aslongas the amount on SCh SE line 2 / 3 is also $400 or exceeds $400 then you need to pay self employment tax; Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for 1099 workers. It is similar to the Social Security and Medicare taxes withheld from the pay of most W2 employees. The self-employment tax rate for self-employment income earned in calendar year is 15.3% (12.4% for Social Security and 2.9% for Medicare). For self-employment income earned in 2014, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).however, you can deduct 50% of the self employment tax on your 1040.As a 1099 worker on your 1099 income, If you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1K(after your credits/ tax withheld) or more when you file your return;but You do not have to pay estimated tax for the current year if you had no tax liability for the prior year; You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12 month period.However many 1099 workers do not pay estimated taxes UNLESS their 1099 income is very high due to lower interest/penalties in general but it depends on your 1099income.
So basically I should save about $200 a week out of $500 in order to pay taxes. Does that sound right? ==============>>>>>>>As mentioned above;