In 2012 I made $18,000 in self employment income. I am young and have only had 1 real job outside of my home. I was laid off from my last job and needed income fast so I got into affiliate marketing and started making money fast. Soon, I was making more than I thought I would. Recently, I found out that I am suppose to pay taxes on self employment income but I don’t know where to start.
Please help! How much will I owe in self employment tax, federal, state, and penalties all together?
Will I get in big trouble?
How do I go about paying my taxes. I am a little confused so I need as many details as possible.
Thanks!
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How Much Will I Owe If I Made $18,000 For Independent Contractor?
Posted on November 3, 2012.
$2211 for SE tax.
$700+ for federal income tax.
??? for state. (One you didn’t give the state and two, I’m not going to figure it out.)
Make absolutely certain that you file by 4/15 and pay by then.
The penalty for failing to make estimated tax payments will add about $100.
Approximately $2500 in self-employment tax.
The federal and state tax depend on the amount of your other income. It could be anywhere from $0 to over $6000, but I would guess around $3000.
Since you are less than a year late, the penalties should be relatively minor, maybe another $300, for example.
Rough estimate: $6000 total.