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As an independent contractor do I have to take out all of the following: SS, Medicare, Federal, & State?

Do I have to take all of those items out of my earnings? If so, Do I take all those withholdings and make estimated(quarterly) tax payments with them?

Public Comments

1. It depends on what marginal tax rate you are in, which is based on how much you earn. Assuming you earn $50,000 a year after expenses, you are in about a 20% tax bracket. Therefore, you pay quarterly estimated taxes as follows: Federal - send them 35% of net earnings, which is 20% for income tax and 15% for SS and medicare. State - send 5% if that is your state's income tax rate. Keep in mind you deduct all expenses first (car, phone, supplies, materials, advertising, office, etc.) before you calculate your net earnings. Good luck.
2. Your self employment tax covers social security etc. You need to look that up. And yes, you need to make estimated quarterly payments. State tax rates are specific to the state, so you should contact someone about that. Not all states have a state tax. States like Florida that have tourist-driven economies sometimes dont have state taxes. Some areas also have a local tax so you should check into that too
3. You will have to file schedule C for all your income and expenses. Then if you make more than $400 net profit, then you also file schedule SE for the 15.3% self employment tax, which is for social security and Medicare. If you anticipate owing self employment taxes, then you should include it in your estimates for federal taxes while sending quarterly payments. Quarterly payments for state taxes are separate and should be sent to your state department of revenue, not the IRS.