Hello,
This will be my first year with 1099 income. For my quarterly tax payments I have been using the below formula.
$25,000 (total estimated income) - $12,500 (standard deduction) = $12,500 (taxable income)
$12,500 x 0.30 (30%) = $3750/4 payments = $937.50 per quarter
My understanding is that 30% should cover self employment, state and federal. Am I correct to include all of that in my quarterly payments?
I know my deduction is filed with my schedule A and revenue reported on schedule C so I was hoping someone could confirm I am thinking about this correctly and the numbers still work. Thank you in advance!
