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peetythefly
New Member

What percentage should I set aside to pay income taxes for the year if I'm renting a room in California?

 
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MarilynG
Expert Alumni

What percentage should I set aside to pay income taxes for the year if I'm renting a room in California?

Income taxes are based on your income, and what tax bracket that income places you in.   If you are Single with no Dependents, and don't have Education Expenses, you should probably put aside from 10-20% of your income for taxes.  

 

If you work for an employer and fill out the W-4 Withholding form, they withhold the taxes for you and issue you a W-2. 

 

If you are self-employed, you will be have a Self Employment Tax assessed on your business income, of which you will receive a deduction for one-half of that amount. 

 

Here's some info about Tax Brackets you may find helpful.

 

 

[Edited 03/23/2020 | 4:22 PM]

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MarilynG
Expert Alumni

What percentage should I set aside to pay income taxes for the year if I'm renting a room in California?

Income taxes are based on your income, and what tax bracket that income places you in.   If you are Single with no Dependents, and don't have Education Expenses, you should probably put aside from 10-20% of your income for taxes.  

 

If you work for an employer and fill out the W-4 Withholding form, they withhold the taxes for you and issue you a W-2. 

 

If you are self-employed, you will be have a Self Employment Tax assessed on your business income, of which you will receive a deduction for one-half of that amount. 

 

Here's some info about Tax Brackets you may find helpful.

 

 

[Edited 03/23/2020 | 4:22 PM]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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