So I'm trying to figure out what percentage of my nightly earnings I should save to put towards my estimated quarterly tax payments. I've read up as much as I can, but all the numbers are still making my brain hurt. I'm single and I live and work in NYC. From what I've gathered, I should be saving about 30-35% of my total income for my federal taxes. In addition to those, there are NY state income taxes that total out to about 7%... and then NYC taxes that I should estimate at about 3%. Then I need to save 15% for self employment taxes. If I'm doing the math right, this leaves me with only about 40% of my income to keep. Please tell me I'm getting something wrong...
From what I understand, I'll take my percentage from all my earnings in January/February/March, write out a check and send it to the IRS with the 1040 form by April 15, and then I'll repeat that process every three months for the rest of the year. Is that kind of correct? Thanks in advance... you guys are lifesavers.



Reply With Quote

Bookmarks