I know figuring possible income tax from year to year can be a daunting task. There are many moving parts to the tax code and the tax amount depends on so many factors. I will try to go over a few here for you:
- You had mentioned that you were paid on a contract basis. Do they issue you a 1099-NEC for nonemployee compensation?
- If so, you will need to pay regular tax as well as Self Employment tax on the income, after expenses you pay. Self Employment Tax Information
- Self Employment tax is only applied at the Federal Level, but you will still pay state income taxes on the income after deductions.
- You Social Security is taxable up to 85% based on all other income on the return, including any spousal income if you are married. Is My Social Security Taxable
- This can vary for state as some states do not tax Social Security, others follow Federal guidelines and still others have their own ways to figure the taxable amounts.
There are some tools out there to help you estimate your taxable income and tax due based on your filing status, income amounts, types of income, and deductions. Here are a few:
Tax Caster by TurboTax
IRS Withholding Calculator
