Since I expect to continue my contractor work in 2017, I want to know how much I need to withhold. I want to withhold part of my 2016 tax refund so I don't have to deal with quarterly installments of estimated taxes.
You'll need to sign in or create an account to connect with an expert.
Yes. Also, you could also adjust your tax withholding to compensate for the estimated tax payment so you don't have to send them.
For federal taxes, there are two amounts that need to be added
together for your estimated tax payments. The self-employment tax rate
of 15.3% plus your ordinary income tax rate (which depends on your taxable
income and filing status). The following article has easy to read tables
for this amount http://taxfoundation.org/article/2017-tax-brackets
How you figure out your estimated amount is to take your gross self-employment income minus expenses to get your "net" taxable self-employment income. Then, multiply that by the 15.3% self-employment tax rate.
Then, look up the rate on the charts for your annual total taxable income (in the link above) and multiple that by the percentage for your total income you expect for the entire year. Add those to tax amounts together.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
joelrose909
New Member
4ed832e35043
New Member
lrobertsgandy
New Member
hahabaha
New Member
nickbare4201
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.