@wateroosterah wrote:
Okay, so 15.3% total for federal tax, plus income tax.
Then what is the typical standard for state self-employment?
Your marginal federal tax rate will be 10%, 12%, 22%, or 24%, depending on your income (possibly up to 36% if you are really high income). Self-employment tax is about 15%. You may also owe 3%-13% state income tax depending on what state you live in.
You file one tax return for the year that lists all your income, deductions, credits and dependents. If you are self-employed, you include a schedule C to report your gross income and expenses. You pay 15% SE tax on your net business profit (taxable income), and the taxable income also flows to your federal return where it is combined with any other income (such as your or a spouses W-2 job, investments, etc.) and your dependents and other deductions, to determine your final income tax. Your income and SE tax are added together and that's what you owe.
For most "middle class" taxpayers, making Federal estimated payments of 30% of your net income after expenses, is probably close enough or even a bit extra. You likely also need to make state estimated payments based on your state's income tax rates.
