Tuesday, February 16, 2010

How much will I owe in taxes if I did $2400 worth the freelance work last year

How much will I owe in taxes if I did $2400 worth the freelance work last year?
I did two websites for a guy last year. Now, he just contacted me asking for my address and social security# for the 1099 Forms. How much will I owe approximately? What a pain in the *ss, I'm never working outside of my current job again unless it's totally under the table in writing!!! grrrrrr!!!!
United States - 6 Answers
Random Answers, Critics, Comments, Opinions :
1 :
LOL. Although I do not know the exact amount... I always go to HR Block online and play with the systems. If you click start a free efile and just enter the information, it will calculate the amount for you. (And don't worry- I always put 123-45-6789 as my social just so I can play around with the system and see exactly how much I will owe/get back.)
2 :
You may not end up owing anything if you worked for a company that took out taxes in addition to this small amount of freelance work. In addition, there may be a wide variety of expenses that you can deduct on that work as well. Also, if you have children that you can claim as dependents that will further lessen the amount of tax you owe with the credits and exemptions that they provide. Taxact.com has a great step by step question program that is absolutely free to use and efile with. I use them every year and I work as a freelance writer. It will ask you if you have any business income to report and then will ask you a series of questions after that to help you claim expenses etc.
3 :
The amount you own will depend on how much you made at your other job and from other sources of income. If you made $5,000 before this income, your taxes would go from $503 to $743. If you made $20,000 before this income, your taxes go from $2,586 to $2,946. If you made $50,000 before this income, your taxes go from $8,694 to $9,294. By the way, another reason to keep things under the table is that you technically owe Social Security Tax, Medicare tax and State tax on this money. Plus, you might need to charge him tax on the transaction and send that to the state.
4 :
self employment taxes would be about $367 - income taxes depend on what tax bracket you are in when you add that income to your othe rincome
5 :
if you moonlight you have to pay for it yes, self employment income is income and is taxable and you need to pay your se taxes on it if you don't like the system, don't play it
6 :
Probably around $720, but could differ depending on your tax bracket, this assumes a 15% bracket plus the self employment tax for social security and medicare. And just how do you plan to get the written statement? Say "hey, mr or ms person who wants to hire me to do some work, would you mind signing this statement that you will promise to participate in tax fraud with me"? And by the way, even if someone was stupid enough to sign it, you still couldn't enforce it since you can't enforce a contract to do something illegal

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