WHAT PERCENTAGE OF 1099 INCOME SHOULD I KEEP BACK TO PAY TAXES AT THE EOY?

joeihry
joeihry Member Posts: 1 Newcomer
edited December 2024 in Filing my taxes

WE WILL BE ADDING A JOB THAT WILL MAKE 35K A YEAR THAT IS 1099. CAN I DO THAT ON YOUR WEBSITE WITH MY OTHER 2 W-2 JOBS?

WHAT PERCENTAGE SHOULD I KEEP BACK TO PAY TAXES AT THE EOY?

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  • AnnieB
    AnnieB FreeTaxUSA Agent Posts: 4
    edited December 2024

    Hello,

    Thanks for reaching out. It sounds like you will have some self employment or independent contractor type income to report on your return. You can enter the 1099 form into our software once you receive it, and we will help make sure it gets reported in the correct place on your return.

    Self-employment type income is generally reported on a Form 1099-NEC for Non-Employee Compensation.

    You can use the worksheet in Form 1040-ES to figure your estimated tax. It is often recommended you set aside anywhere from 20-35% for self employment taxes, though it will depend on on your total income for the year and other factors.

    Please note that taxes are pay-as-you-go, so you should pay estimated taxes by the quarter when you receive the income. We discuss this issue further here: Estimated Tax

    Additionally, you can read more about this topic on this IRS website: Estimated Taxes

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