fed tax question for independant contractors (taxes, safe, move)

[jnanner]

maybe a dopey question but...

i don't really know how it all works here. in NY i had to pay state & fed tax so I generally set aside 1/3 of my earnings for taxes. I was usually a little over but I prefer to be safe than sorry and I set the tax money aside in an interest earning account anyway.

Here in FL i only pay the fed tax and have no idea what would be a good rule of thumb to go by...

It's a new year and I need a plan! What do you do??

[Skunk Workz]

Originally Posted by jnanner

maybe a dopey question but...

i don't really know how it all works here. in NY i had to pay state & fed tax so I generally set aside 1/3 of my earnings for taxes. I was usually a little over but I prefer to be safe than sorry and I set the tax money aside in an interest earning account anyway.

Here in FL i only pay the fed tax and have no idea what would be a good rule of thumb to go by...

It's a new year and I need a plan! What do you do??

Even though I do a lot of contract work, I'm incorporated as an S Corp so I pay via payroll taxes twice a month.

I'd think that your federal would be the same as it was before (if you're making the same amount), so looking at your past returns for the amount of tax owed would probably get you the number you need.

[hboute]

I do the same here in Virginia (1/3) and plan on doing the same when I move down to FL later on this summer, except for the state taxes.