My wife made ~14K this year in 1099-MISC's, setting 50% aside for the taxes.
I was fully employed, meaning I have a W2 form on hands.
We are filing as "Married / filing jointly". After entering all numbers I see an estimate of the return (federal + state).
The question is, given what stated above, what's her exact tax rate? Is it possible to calculate it? We want to know how much money she needs to pay out of the 50% she set aside.
There is no exact tax rate for her alone on a joint return. Your tax rate is determined by the total income reported on the joint return, regardless of where that income is from.
But at a minimum, if your wife has more than $400 of taxable self-employment income, she will pay the 12.6% self-employment tax on that taxable business income. The SE tax is basically the employer side of her social security and Medicare tax.
Still have questions?Make a post