Hi, I recently started doing doordash full time, and I’m trying to see roughly what my tax return will look like each year if I make a certain amount of income. I just need a little help with the TaxCaster app. So:
1) Under TaxCaster > Income > Total Business Income, would I type the amount that I profited into that box, or would I type in total earnings?
2) Under TaxCaster > Tax Breaks > Estimated Federal Taxes Paid, would I put in the total tax amount paid, including self employment tax amount paid, or just the federal withholding? There is no separate box for the self-employment tax
3) Where it shows the estimated federal refund/balance due, if you owe taxes, does it include all taxes owed (including any self-employed taxes), or just the federal income tax?
I’m asking these questions because theoretically, I went with worst case scenario in this instance to estimate tax return if I made $48,000/year (total earnings, not profit). Business expenses is about 20%, based on average mileage, because I was informed you either have to track mileage or you have to track things like car maintenance, gas, etc, and that you can’t deduct both, so in that case, that would be $9,600 in expenses. Afterwards, I would be setting aside about 30% of the money to make as estimated quarterly tax payments ($11,520 in total). Assuming that #2 only applies to the actual federal tax and doesn’t include self-employment tax (Medicare, Medicaid, social security), about half of the $11,520 would be paid as federal tax while the other goes to Medicare/Medicaid/social security, which is $5,760. After inputting that final number into the “estimated federal taxes paid”, it says I would still owe over $1600 which is absolutely absurd considering the amount of tax that would be being paid, so if someone could answer the above questions accurately, I would appreciate it
