25%
Posted By: Happy MT Robin on 2009-01-07
In Reply to: For any ICs - Tera
I take 25% out of my IC payment and put it in a separate account. Depending on how much you make per year, your federal taxes will vary, but mine average around 10 to 15%. You also have to pay up front 15.3% FICA/MedFICA. You should pay them quarterly as well. You can get the forms from the IRS web site. You can deduct the employers portion of the taxes on your tax return at the end of the year but you have to pay it up front. That's 7.65 for you as the employee and 7.65 as the employer portion. I find that if I take out 25% it works out fairly evenly for me.
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