Hello all, I live in the US I have done affiliate marketing full-time this year. My income was $25,000 I have been self employed and work with 12 different companies which I filed a 1099 form with. Does anyone have any idea what I will owe? When using the self employment tax calculator at http://www.dinkytown.net/java/TaxSelfEmployment.html it states my taxes are around $3,500 Is this accurate. would I pay any taxes besides this? Any answers or experiences on this topic would be appreciated. Thanks, Rob
Hello, I think you are going to owe more than what they listed. They only listed income tax you would owe. The Self Employment tax is 15%. You have to deduct your expenses first, then apply the 15% to get the amount owed . Are you married, single, got kids? If single you deduct roughly 8,000 from income to get the taxed amount. Depending on how much is left afterwards tells you the % of tax. It should be for you, about 15%. so SE = 3750 Income Tax = 2550. Course those are rough numbers. Uncle Sam takes a bit eh? Dig for those expenses though cause they will take down the SE tax, which just plain kills. If that confused you, sorry. Just post back and tell me where it lost you.
What about your deductions? Surely you have expenses. Do you do business from your home? What about your computer costs? You can deduct your internet bill too. I use Intuit's program and never have problems.