Hello,
Thanks for the speedy information. I have yet to review the whole tax filing, as I will need to add my 1099 and 1045 forms. That being said I made around $50,000, with a standard deduction of $15,000 and other deductions of $2,000. I expect my taxable income to be around ~$33,000. I do not own a business. For conversation reasons, pretend I did landscape work where I sold my skills as an individual amateur and people paid through check.
I can see how the 35.3% is calculated if I ignore any deductibles my income tax rate would be 22% and the SE tax would be 15.3% making a total of 35.3%.
Since my after-deductible income is $33,000. I would assume that I pay 15.3% on this which is $5,049. Then I read I can deduct up to 50% of this amount from SE tax when calculating my income tax liability which lowers my AGI.
This would then bring my net income to $30,475.50 where I would pay $1,160 + 12% of the amount over $11,600. This would mean a federal income tax of $2,265.06 causing a total federal taxation of $7,314.06.
I am also assuming the $30,475.06 is my income for My state taxes ( 5%) which is an additional $1523.77.
I did not make quarterly estimates, so I understand that if I pay at least 90% of the unpaid amount or 100% of the previous year's tax liabilities before January 15th, I may be spared form a large charge at the federal and state levels.
I have yet to factor in my healthcare costs and realized stock gains (long and short term), but I think I did an accurate job of how much I should owe. Can someone comment on the accuracy of these numbers and the approach? Thank you.
