Working for an insurance agent have to do a 1099
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First of all you are only taxed on the net not the gross. Therefore you should estimate both your income and expenses. Once you have some idea of your net you can count on 15.3% of that as SS and Medicare. Next you can deduct your standard deductions and exemptions from the net. That will give you your taxable income for the Federal income tax. On that income your will be taxed at something between 10 and 25% depending on the amount you make. As for the state and local it would depend on where you live and earn this income. A safe bet is 5% of the net. All of this assumes that you have no other income. If you do add that to the net before calculating the income tax for both Federal and state. It would not be included in the calculation for the SE Tax.
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It depends on your income, your state and your city. See a tax professional in YOUR area.
Helen, EA in PA
What percent do you take out for federal, city, and state taxes. If working as a subcontractor?
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