I make $2400 a month as an independent contractor. How much of that 2400 should I save for taxes?

[Hal_Al]

Simple answer: 25%. In addition to income tax, you will have to pay "Self employment tax" (SET-social security and medicare).
The actual amount depends on other factors. You can use this tool to do an estimate  <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1">https://turbotax.intuit.com/tax-to...>

[TomYoung]

Understand, too, that if you do not have income from which taxes are withheld then you need to also pay estimated taxes on a quarterly schedule.
<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-p...>

[fanfare]

25% will work if you stay in the 10% bracket. If you jump to the next bracket you will owe at tax time.
You may take into account your Standard Deduction.

[emjohnson89]

How do we know if we are in the 10% bracket or higher?  

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://taxfoundation.org/2019-tax-brackets">https://taxfoundation.org/2019-tax-brackets</a>

[emjohnson89]

How much do you have to make to pay taxes quarterly?

[Hal_Al]

Simple answer: $7100 (14.1% x $7100 = 1000).


You should make estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

TurboTax (TT) can prepare the quarterly payment vouchers. In your 2018 software, enter at:

Federal Taxes or Personal

-Other Tax Situations

  -Other Tax Forms

    -Form W-4 and Estimated Taxes - Click the Start or Update button

On the next screen answer No to the W-4 question


If your goal is just to avoid the underpayment penalty, then paying 100% of the prior year tax liability is the “safe haven”

[SweetieJean]

The brackets indicated in the link above are for your taxable income, after your standard or itemized deductions.

Remember state taxes as well.

[emjohnson89]

According to the link I am in the 12% bracket.  Should 25% still be a safe amount to shave each month?

[Hal_Al]

Yes.
 It's complicated. Hence, the "simple answer".
$2400 x 12 = $28800 - 14034** = $14766 taxable income equals $1583 tax from the tax table.
1583/14766 = 10.7%.
Self employment tax (SET) is 92.35% of 15..3% = 14.1%
14.1 + 10.7 = ~25%.

Any additional income (over $2400/Mo) will be tax at 26% (12 + 14.1)

**Your $12,000 standard deduction plus your self employment tax deduction (half your SET).