How much should I save as a 1099 contractor for taxes?

The 30% amount would not hurt but in the mean time you might be making some quarterly estimated taxes as a part of your 30% savings for any possible income tax liability you might have when you 1040 federal income tax return is correctly completed after the end of the tax year 2010 in the next tax filing season in the year 2011.

Using the below enclosed website address.

You can find the estimated tax worksheet and instructions by using the below enclosed information

If you would like to do some estimated tax calculations you would need to go to www.irs.gov and use the search box for 1040ES go to page 8 for the 2010 Tax Rate Schedules and page 7 for the worksheet.

You can try anyone of the online estimated tax calculators for some estimates to get an idea of what things may look like after using the correct IRS forms and compare the numbers

Use your search engine and type ESTIMATED TAX CALCULATORS and you will be able to find several of them that you can use for this purpose.

http://www.dinkytown.net/java/Tax1040.html

All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.

In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

The independent contractor self employment income will be reported on the schedule C of the 1040 tax form and you will be responsible for the 15.3% of the social security and medicare tax on your net profit from the business operation you also may need to make some quarterly estimated tax payments for the tax year 2010. The last payment would be January 18 2011.

You would have to be sure that you handle your business deductions correctly for your business operation.

For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

2 of the seven tax tips for starting a business enclosed below.

#4 Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

#7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material

*Starting A Business

*Operating A Business

*Closing A Business

*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)

http://www.irs.gov/

http://access.wa.gov/business/taxes.aspx

Hope that you find the above enclosed information useful and good luck to you.

And a happy thanks giving to you in a couple of days today is November 23 2010

Dear M: Could be 30! It depends on total income. Save 15.3% for SE tax Soc Sec and Medicare. Then your income will determine the rest. If you are single and make $50K or less hold out another 15%.

If you know your profit for the year, go to H&R Block and use their free calculator to determine the bottom line.

Sch C is your filing form and your income and expenses go on this form. Then your SE tax must be calculated on Sch SE.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

you are asking the same question or is this a yahoo glitch?

see the other responses, and no it is not 30%