topic Re: Estimated amount in Self employed

Estimated amount

cclee123 — Wed, 30 Aug 2023 16:20:16 GMT

Hi there!

I've been working as both an art model and pet sitter this year, keeping a graph of all of my earnings, and paying the quarterly deadlines the 15.3% that (I believe) I owe. Is that the correct number? If not, will I be able to rectify the balance when I file my yearly next April?

Re: Estimated amount

Cindy4 — Wed, 30 Aug 2023 16:23:23 GMT

Hi @cclee123 !

15.3% is the correct amount for Self-employment tax to cover FICA, which is the social security and medicare tax. You will want to also consider your income tax that may be due based on your taxable income. Federal income tax is different than FICA. It will me an amount on top of the 15.3%. Here are the 2023 tax brackets that you can use as a guide to help you figure what percentage to include for that:

https://turbotax.intuit.com/tax-tips/irs-tax-return/current-federal-tax-rate-schedules/L7Bjs1EAD#:~:text=for%20other%20income.-,What%20Are%20the%20Current%20Federal%20Tax%20Brackets%20for%202023%20(for%20filing,%24172%2C623.50%20plus%2037%25%20of%20the%20amount%20over%20%24578%2C100,-How%20Do%20Tax

Hope this helps!

Cindy

Re: Estimated amount

cclee123 — Wed, 30 Aug 2023 16:29:02 GMT

Big help, thank you! And a potentially silly question: What if I'm uninsured?

Re: Estimated amount

Cindy4 — Wed, 30 Aug 2023 16:31:33 GMT

You may want to consult with an insurance agent regarding requirements. They vary from state to state.