BestOfBid.com
How much federal withholding should I have deducted?
I worked for 3 months this year as an independent contractor, making $5,400.00 (no fed. taxes withheld or paid). Yesterday I started a new job as an employee ($30,000/yr.). How much should I have deducted per pay check to make up for that time I did not have anything taken out? Either number of allowances, flat dollar amount or %...I don't have any dependents, nor do I own any property.
Public Comments
- You've probably got about $1600 to make up for the earlier gig, plus whatever you will owe for your new job. I'd claim single-zero and have an additional $45 a week or so taken out of your check (line 6 on the W-4 - and that's $45 per WEEK so if you don't get paid weekly, calculate the amount per pay to deduct extra for what you'll owe on the contract job. The reason that's so much is that you'll have not only income tax, but also self-employment tax which is both halves of social security and medicare, When you are working for an employer, like you are now, the employer pays half of the ss and medicare - when you're a contractor you pay it all.
- Single with 0 allowances. But you will probably will still owe self-employed tax since you were independent contractor. How much will depend on how much you had expenses connecting with self-employed income.
