I started to work as an individual contractor on July 1st, and I'm preparing for my first quarterly tax estimate. I assume I will pay the quarterly tax before Sept 16. I am confused by the order of calculating deductions. So if I use the following example:
income for this quarter: $10,000
Part One: Self Employed Tax
Self-employment tax: 15.3%, apply to 92.35% of total income, which is $1412.96. No question.
Part Two: Federal Income Tax
1. Deduct half of the SE tax ($706.48). No question.
2. Standard deduction: How doe it apply to quarterly tax? (It is for the whole year?)
3. QBI: Do I qualify for QBI if I'm an individual contractor?
4. If I work in my home office, does the house rental count as business expense?
5. federal tax: What bracket should I use for this since I cannot estimate the total income for the entire year yet?
Thanks in advance!
