Please keep in mind that if you are doing contract work you will likely be receiving a 1099-NEC, rather than a W-2. If this is the case you will be subject to Self-Employment tax, in addition to income tax, on any net earnings. Net earnings will be your income minus any allowable deductions related to generating the income. The Self-Employment tax is calculated as: Taxable SE Income = Net Earnings x 0.9235. The result of this will be multiplied by the 15.3% SE tax rate for social security and Medicare. As a W-2 employee your employer would cover half of that and withhold the other half from your pay along with federal withholding for income tax. Being Self-Employed, you are required to make estimated quarterly payments instead. Please see the below resources for reference:
How to File Taxes as an Independent Contractor: Tax Forms, Deductions, and Credits for Freelancers
A Guide to Self-Employment Taxes for Contractors, Freelancers, and Beyond [Infographic]
Hope this helps!
Cindy
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