How much to save for taxes

[robertbarnes62]

Hello,

i work for a company and will be given a 1099 at the end of the year. I wanted to know what percent of my money do I need to save so when I file taxes I will have the money I need to pay the irs. I have no house or dependents to claim. I live in Georgia if that info is needed.

Any my help would be great!

thanks

 

[Ragman]

Hello,

i work for a company and will be given a 1099 at the end of the year. I wanted to know what percent of my money do I need to save so when I file taxes I will have the money I need to pay the irs. I have no house or dependents to claim. I live in Georgia if that info is needed.

Any my help would be great!

thanks

It might be a good idea to get that information from your accountant.

 

[layoutshooter]

Better get a CPA quick, he/she/it can advise how much your quarterly payments should be.

 

[robertbarnes62]

It might be a good idea to get that information from your accountant.

Thanks for that input. I have not had a chance to talk to one and was just hoping someone here could give a estimate.

 

[Ragman]

Thanks for that input. I have not had a chance to talk to one and was just hoping someone here could give a estimate.

Any estimate given here would be of no use to your situation. We all have a different financial reality, and yours is yours alone.

Find the time to get with your accountant before getting into any tax issues you might regret later.

 

[layoutshooter]

I agree with Ragman, make the time, yesterday, and get on a plan. There are penalties, fines, interest, that you may have to pay if you don't make those quarterly payments

 

[Moot]

You should be making estimated quarterly tax payments to the IRS. They tend to frown on lump sum payments in April when there has been no withholding or quarterly payments during the previous year. You may also be required to make estimated quarterly payments to you state. Here is a link to the IRS calculator. Estimated Taxes

 

[Fkatz]

Hi, all.

First of all, it would depend upon what type of vehicle that you own

1. Ford, Chevy, Sprinter Cargo Van- "B" unit
2. 22-24 Ft Straight Truck "D" Unit
3. Tractor "E" Unit/With Trailer

"B' Units- Cargo vans- Can take the Standard Mileage Deduction, but cannot take the following items as expenses.
A. Lease Payments( If vehicle is leased )
B. All Insurance- Liability, Collision, Bobtail
C. Repairs and Maintenance
D. All Fuel
E.. IRP Registration, Licensing
F. Depreciation on the Vehicle including the deposit if purchased in the tax year
Everything else is allowed!

" D" Units-22-24 Ft. Straight Truck with Box,

A. Depreciation must be taken, including the Deposit in full,
Balance at straight line depreciation for 5 years with a 6 year life under 26,000 lbs GVW/ Or can be taken for 3 years with a 4 year life up to 33,000 lbs
B. All other expenses are deductible

" E " Units- Tractors

A. Depreciated only for taken for 3 years with a 4 year life
B. All other expenses are deductible

IF you own your own Trailer

A. Depreciated only for 6 years with a 7 year life
B. All other expenses are deductible

The only items that must be separated its
Engine Oil
Additional Fluids, anti freeze, diesell power and additives

Once you get your 1099, and show it as gross income, then the items are applied deducted from that gross.

If you make a profit, you will have to pay 15.3 % Self employment tax, plus depending on the amount of that profit you will have to pay the percentage of either 15, 25, or 28% or more depending on the gross profit.

Example:

$15,000 gross profit would be 15% of the total or $3,000 tax owed
plus 15.3% Self employment tax

$15,000 X .0153= Approx 2,330.00 tax So you would owe 3000. plus the 2330 for a total of $ 5,330 Federal Taxes owed.

So once you have 6 months, lets say Jan-1 -June 30. we will have a better idea of if you owe or have a loss, donl't forget to enter your total days out, if you do not go home, 180 days

Make sure you have a separate checking account where you must deposit your settlements, Pay all your business expenses from that one, and transfer any money over to your Personal Account to pay those bills, Mortgage, Rent, Home Phone, food, and other personal bills.

If you have any question please do not hesitate to ask.

Franklin Katz, ATP, PA, PB Frank's Tax & Business Service
315 E. King St
Kings Mountain, NC 28086
( 704) 739-4039
Fax: (704) 739-3934
E-mail: [email protected]
Website:http://www.frankstaxbusiness.com


INCOME TAX PREPARATION,ACCOUNTING/BOOKKEEPING, AND PAYROLL

 

[robertbarnes62]

Hi, all.

First of all, it would depend upon what type of vehicle that you own

1. Ford, Chevy, Sprinter Cargo Van- "B" unit
2. 22-24 Ft Straight Truck "D" Unit
3. Tractor "E" Unit/With Trailer

"B' Units- Cargo vans- Can take the Standard Mileage Deduction, but cannot take the following items as expenses.
A. Lease Payments( If vehicle is leased )
B. All Insurance- Liability, Collision, Bobtail
C. Repairs and Maintenance
D. All Fuel
E.. IRP Registration, Licensing
F. Depreciation on the Vehicle including the deposit if purchased in the tax year
Everything else is allowed!

" D" Units-22-24 Ft. Straight Truck with Box,

A. Depreciation must be taken, including the Deposit in full,
Balance at straight line depreciation for 5 years with a 6 year life under 26,000 lbs GVW/ Or can be taken for 3 years with a 4 year life up to 33,000 lbs
B. All other expenses are deductible

" E " Units- Tractors

A. Depreciated only for taken for 3 years with a 4 year life
B. All other expenses are deductible

IF you own your own Trailer

A. Depreciated only for 6 years with a 7 year life
B. All other expenses are deductible

The only items that must be separated its
Engine Oil
Additional Fluids, anti freeze, diesell power and additives

Once you get your 1099, and show it as gross income, then the items are applied deducted from that gross.

If you make a profit, you will have to pay 15.3 % Self employment tax, plus depending on the amount of that profit you will have to pay the percentage of either 15, 25, or 28% or more depending on the gross profit.

Example:

$15,000 gross profit would be 15% of the total or $3,000 tax owed
plus 15.3% Self employment tax

$15,000 X .0153= Approx 2,330.00 tax So you would owe 3000. plus the 2330 for a total of $ 5,330 Federal Taxes owed.

So once you have 6 months, lets say Jan-1 -June 30. we will have a better idea of if you owe or have a loss, donl't forget to enter your total days out, if you do not go home, 180 days

Make sure you have a separate checking account where you must deposit your settlements, Pay all your business expenses from that one, and transfer any money over to your Personal Account to pay those bills, Mortgage, Rent, Home Phone, food, and other personal bills.

If you have any question please do not hesitate to ask.

Franklin Katz, ATP, PA, PB Frank's Tax & Business Service
315 E. King St
Kings Mountain, NC 28086
( 704) 739-4039
Fax: (704) 739-3934
E-mail: [email protected]
Website:http://www.frankstaxbusiness.com


INCOME TAX PREPARATION,ACCOUNTING/BOOKKEEPING, AND PAYROLL

I do not own the truck. I am using their truck.

 

[RLENT]

One point in response to Frank's comments on insurance:

There may be some insurance that is deductible as a business expense, specifically I'm referring to Occupational Health Insurance (aka Worker's Compensation for self-employed individuals)

 

[Fkatz]

True if you do not own the truck then the Occupational/Workers Comp. you may deduct from your profit.

Frank

 

[robertbarnes62]

True if you do not own the truck then the Occupational/Workers Comp. you may deduct from your profit.

Frank

Thanks for the response. So with me not owning the truck what would be a good percentage to save for taxes? Would it be the 15% self employment tax plus another 25% to total 40%?

 

[Moot]

Without knowing your filing status etc. 30% of your gross should be more than enough.

 

[robertbarnes62]

Without knowing your filing status etc. 30% of your gross should be more than enough.

I am single, no dependents, no house

 

[EASYTRADER]

Save 10% of your settlement check and you will be fine. As much as people ***** about taxs most of us dont pay more than 10 percent.

Sent from my GT-P3113 using EO Forums mobile app

 

[robertbarnes62]

Save 10% of your settlement check and you will be fine. As much as people ***** about taxs most of us dont pay more than 10 percent.

Sent from my GT-P3113 using EO Forums mobile app

Ok, but what about the 15% self employment taxes? So are saying 25% total or just 10% total is a good starting point?

thanks for any help

 

[ATeam]

Ok, but what about the 15% self employment taxes? So are saying 25% total or just 10% total is a good starting point?

thanks for any help

Robert,

While your concerns are well placed and questions well asked, your posts seem to indicate a reluctance to fully embrace your obligations as a self-employed business person. Your task is not to put money away to meet a future obligation. Your task is to meet your obligations now by filing quarterly estimated tax payments.

That means calculating your estimated payments correctly, which means keeping good track of your business income and expenses. If you are not doing that now, start now. Waiting will only put you in more of a bind than you may be already in (depending on how many quarterly payments you have missed).

If you do not know how to complete and file quarterly estimated tax payments, hire someone who does know how to do it for you or learn how to do it yourself. Either way, this is part of the personal growth that is required to succeed as a self-employed business person.

 

[robertbarnes62]

Robert,

While your concerns are well placed and questions well asked, your posts seem to indicate a reluctance to fully embrace your obligations as a self-employed business person. Your task is not to put money away to meet a future obligation. Your task is to meet your obligations now by filing quarterly estimated tax payments.

That means calculating your estimated payments correctly, which means keeping good track of your business income and expenses. If you are not doing that now, start now. Waiting will only put you in more of a bind than you may be already in (depending on how many quarterly payments you have missed).

If you do not know how to complete and file quarterly estimated tax payments, hire someone who does know how to do it for you or learn how to do it yourself. Either way, this is part of the personal growth that is required to succeed as a self-employed business person.

Thank you for your reply. I understand all of what you have said. I am new to this field and was just wondering what percent was a good rule of thumb, that's all. It has nothing to do will being fully committed at all it has everything to do with being prepared for what is to come. I do plan on making quarterly payments but even then I would need to reserve cash to make them. So I simply am asking is there a percentage that the experienced have found to put them in a ball park. I know everyone's situation is different that is why I posted my situation as well so maybe someone could relate and help me out. Thanks for your reply although it did not help with a percentage that I could use.

 

[Moot]

Why not use the IRS calculator I linked earlier in this thread? There are so many variables it is difficult to give you an amount. For your first year much of it will be guess work. How much do you expect to gross? How many days (per diem) do you expect to be out this year? What other tax deductible expenditures do you expect like hotels etc.?

 

[Fkatz]

Evening Robert,

You have to figure the net income taxable at either 10% if your net income is under$8,925.00
if your net income is over $8925.00 and Under would 15% tax to $36,250,000 and Over $36,250.00, to $ 87,850.00 the tax rate is 25%.
Most fall into the 15% bracket

If you make a profit you are taxed at 15.3% Self employment tax that will be added to you total taxable income on the profit,
So to play It safe 25% is a good percentage to withhold from your weekly.
settlements
You really cannot figure your tax until you have a minimum of 6 month of settlements, and expenses, do not forget to figure your per Diem, is 80% of $59.00 per Day.
It is a reimbursement of your food only, not a refund

FranklinKatz, ATP, PA, PB
Frank'sTax & Business Service
315E. King St
KingsMountain, NC 28086
(704)739-4039
Fax704) 739-3934
E-mail:[email protected]
Website: www.frankstaxbusiness.com