Small Business Tax Help
October 25th, 2007
Question: IT/Contractor small Business Tax calculations?
I want to register with the IRS as an independent IT contractor of sorts? I would essentially have to get an EIN as my few little clients require it for auditing purposes. My question is, if I intend to make less than 10k with this small business venture, what can I expect in relation to how much I’ll be taxed?
Also any suggestions to help me out as a start this venture would be awesome. Thanks in advance!
Answer: If that's your only income, and you are not a dependent, your income tax will be very low, around $105 on $10,000. If you have other income, your income tax will depend on your total income for the year, filing status, and deductions.
If you are a dependent, then your income tax would be more like $455.
In either case, you'd owe self employment tax, for social security and medicare, of around $1413.
This assumes a net income of $10,000 after any associated allowable expenses have been deducted.
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