USA Taxes - How much to set aside?

Discussion in 'Affiliate Programs' started by Volknet, Aug 5, 2007.

  1. cctran

    cctran Peon

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    #21
    reserve approximately 50% (49.4%) of your profit.

    35% federal, 9.3% california, 1% california mental health service act, 15.3% federal self-employment tax (12.4 for ss + 2.9 for medicare).

    luckily federal self-employment tax is caped and deductible but in general reserve 50% after profit

    also you might want to consider california tax exempt munis. while the yields are lower (ie: 4%) vs 5% or whatever you are getting from hsbc, hsbc is taxed at your income which will be 50%, which makes tax exempt munis attractive @ your bracket.
     
    cctran, Aug 7, 2007 IP
  2. cctran

    cctran Peon

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    #22
    btw 540es & 1040es are due september 15th so hopefully you talk to your accountant before then in case you havent been submitting quarterly estimate payments
     
    cctran, Aug 7, 2007 IP
  3. Volknet

    Volknet Peon

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    #23
    Yea... I'm getting that setup this week.

    I just need to find a good accountant to talk to now.
     
    Volknet, Aug 7, 2007 IP